UK asset manager Abrdn is set to make hundreds of job cuts as part of a cost-cutting plan aimed at saving around £150mn. The job cuts, which will account for about 10% of Abrdn’s workforce, will focus mainly on support and control functions rather than investment roles. This decision comes after Abrdn hired Boston Consulting Group as an advisor last year.
Since his appointment as CEO in 2020, Stephen Bird has been striving to reduce costs to restore profitability and improve the company’s share price. Several of Abrdn’s investment funds have been closed, restructured, or merged and around a fifth of the multi-asset team were let go last year.
Discontent among Abrdn’s employees has been brewing due to management decisions. The Financial Times revealed in December that Abrdn was planning to cut redundancy payouts by half and reduce paid parental leave by about a third. This has led to allegations from a group of employees that these maneuvers may have violated employment law and they are considering legal action.
Abrdn confirmed plans to cut redundancy payouts and reduce the length of paid parental leave. The company claimed to have engaged with employees throughout this process and made amendments based on employee feedback.
Abrdn came to existence through a merger of Standard Life and Aberdeen Asset Management in 2017. The company has seen client outflows and losses in the past 18 months, and its shares have gone down 47% from their highest point in December 2019. During the first half of 2023, the asset manager faced larger than expected outflows, with investors withdrawing a net £4.4bn from its funds on top of a net £10.3bn in 2022.
