Abrdn plans to cut 10% of workforce as assets hit record low

ABRDN plans to eliminate roughly 500 roles, or about 10 per cent of its workforce, as part of a programme to save at least an annualised £150 million (S$255 million), according to a filing on Wednesday (Jan 24). 

The Edinburgh-based asset manager, which has been struggling to stem outflows, said the proposed “transformation” is designed to restore its core investments business to a “more acceptable level of profitability” and allow for “incremental reinvestment into growth areas”.

The plan includes removal of management layers, boosting efficiency in outsourcing and technology as well as reducing overheads in group functions and support services, the firm said, adding that it will be largely implemented in 2024 and completed next year. 

Stephen Bird, who took over as chief executive officer in 2020, has been trying to simplify operations and reduce the firm’s reliance on actively managed mutual funds. He has already completed several rounds of job cuts and other reductions. His efforts have so far failed to stop the bleeding of assets, which hit a fresh low – at about £495 billion –  as clients pulled a further £12.4 billion in the six months through December. 

Since the merger of Standard Life and Aberdeen in 2017, abrdn has seen billions flow out of its funds and the share price plunge more than 50 per cent. 

A few months ago, abrdn brought in advisers from Boston Consulting Group to help identify £200 million in costs to be cut, Bloomberg News reported in November. BCG was expected to bring down overheads by finding new ways to carry out central and support services, rethinking the number of management layers, and identifying duplications across the business. BLOOMBERG