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abrdn PLC on Wednesday announced it plans to slash around 500 jobs, and said it will kick off a transformation programme to generate annual savings of £150 million by the end of 2025.
The programme will include removing management layers, increasing spans of control, efficiencies in outsourcing and technology areas, as well as cutting overheads in group functions and support services.
While most of the savings will come from non-staff costs, abdrn expects to cut around 500 roles. Sky News had reported the plans for the job cuts on Tuesday. abrdn employs around 5,000 people.
Chief Executive Officer Stephen Bird said: ‘Market conditions have remained challenging for our mix of business, and this is reflected in our year-end assets under management and administration, flow numbers, and margins. The board and I are committed to taking these significant cost actions now to restore our core Investments business to a more acceptable level of profitability.’
abrdn said that as of December 31, assets under management and administration fell to £494.9 billion, down from £495.7 billion at June 30. Meanwhile, net outflows worsened to £12.4 billion in the second half, from £5.2 billion in the first half.
For 2023 as a whole, abrdn expects adjusted operating profit to be broadly in line with consensus, which it does not outline. It expects adjusted capital generation to be above consensus, ‘owing to higher interest income on the group’s cash balances’.
abrdn shares fell 3.7% to 165.90 pence each on Wednesday morning in London.
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