Abrdn begins cost-cutting push with job losses: Reports
Asset manager Abrdn is set to cut hundreds of its job as it continues its cost-cutting effort, according to reports.
The firm, which held £496bn in assets under management when it last reported in August, has seen continuous pressure to cut costs as its performance has been underwhelming.
One market source who spoke to Sky News’ Mark Kleinman said the cuts could affect around 10 per cent of the firm’s work force, which is made up of almost 5,000 people.
The cost-cutting efforts for the firm began in September 2020, and has seen the closure, restructuring or merger of over 100 of its funds, while its multi-asset team has been reduced by a fifth.
Last month, it was reported that the firm had slashed some of its employee benefits, such as redundancy pay and parental leave, in a bid to contain expenses.
The firm’s stock price took a nosedive over the summer, falling 28.8 per cent throughout August, and has yet to recover.
The decline came following the publication of the firm’s interim results, which revealed that profits in its investment arm had fallen 66 per cent over the first half of 2023 while outflows from the business sat at £6.5bn.
Abrdn is set to make a trading update tomorrow which will reveal its performance since August, that will also contain disclosure of significant outflows, according to Sky News.
The firm was formed in 2017 through the merger of Aberdeen Asset Management and Standard Life, and is led by CEO Stephen Bird.
Last year, analysts at Panmure Gordon argued that Abrdn’s management strategy needed an overhaul, as there was a “real risk that value leaks through mismanagement”.
Abrdn declined to comment.