(Bloomberg) -Manulife Financial Corp. has cut hundreds of jobs in its global wealth and asset management business, representing about 2.5% of the division’s staff.

The move was made “in an effort to leverage our global operating model and focus on high-growth priorities,” a spokesperson said. The Toronto Star reported earlier that the firm is eliminating 225 jobs.

Manulife’s wealth and asset management division had more than C$1.1 trillion ($791 billion) of assets under management and administration as of June 30, handled out of offices in Canada, the US, Asia, Oceania and Europe.

Asset and wealth management firms face compression in their profit margins, consulting firm Deloitte said in its 2025 investment management outlook.

“With increasing investor appetite for low-cost funds, the low-expense ratio environment may be here to stay with active management finding a home inside the exchange-traded fund wrapper,” it said. The pace of outflows from actively managed US mutual funds has increased in recent years, it added.

The consultancy said the biggest risks facing investment managers are digital transformation, technological advancements and cybersecurity.

Manulife reports its third quarter earnings on Nov. 6 after the market close.