- Abrdn to cut hundreds of jobs
- Facing fund outflows challenge
- CEO invests in retail
On Wednesday, the fund management firm will disclose its intentions to reduce its personnel by several hundred positions out of approximately 5,000 employees.
Hundreds of jobs are about to be eliminated by the British fund manager Abrdn as part of a cost-cutting initiative to bolster the firm’s faltering performance.
Abrdn is expected to disclose its intentions regarding a series of layoffs during a hurriedly planned trading update on Wednesday morning.
It remained uncertain whether Abrdn would provide an exact figure regarding the headcount reductions; however, a market source speculated that the company might lay off approximately 10% of its nearly 5,000-person workforce.
Analysts anticipate the merged entity, established in 2017 through the combination of Aberdeen Asset Management and Standard Life, to reveal that it incurred further fund outflows amounting to billions of pounds in the latter part of 2023.
Abrdn Faces Performance Challenge
Abrdn, whose assets amounted to £496 billion as of the most recent trading update in August, is facing the challenge of improving its performance in light of its declining share price.
The organization’s stock value has decreased by approximately 15% in the past year and is currently worth only £3.3 billion.
Stephen Bird, the former executive of Citigroup who assumed the role of Abrdn CEO in 2020, has strategically invested £1.5 billion in Interactive Investor, a funds marketplace, to advance his position towards retail investors.
It is reported that this division is performing exceptionally well, whereas the institutional business has struggled due to broader market pressures.
As part of an effort to gain a firmer grasp on expenses, the Financial Times they were reported last month that Abrdn was reducing employee benefits such as paid parental leave.
In addition to closing and merging dozens of funds to increase efficiency, Mr. Bird implemented fewer layoffs the previous year.
Additionally, he has appointed Jason Windsor, a former Aviva finance chief and the organization’s new chief financial officer, as his long-term successor to Mr. Bird should he decide to quit the organization.
