Fund manager Abrdn plans to cut around 500 roles from its business as part of a “transformation programme” to make at least £150m of cost savings.
The group said the programme was designed to restore its core investments business to “an acceptable level of profitability and allow for incremental reinvestment into growth areas”.
Chief executive Stephen Bird said: “Market conditions have remained challenging for our mix of business, and this is reflected in our year-end AUMA, 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.”
He added: “Although our business model benefits from the diversification that comes from operating three businesses, we will not rest until all of them are contributing strongly to group profitability.”
Abrdn, which employs around 5,000 people, said the cost-cutting programme would include the sale of its European-headquartered private equity business, removal of management layers, further efficiency in outsourcing and technology areas, as well as reducing overheads in group functions and support services.
Most of the jobs will go in London and Edinburgh.
The firm said its investments division had faced structural headwinds during 2023, with high inflation and geopolitical uncertainty continuing a trend of cash and de-risking of client portfolios. Some £11.2bn of net outflows were recorded in its institutional and retail wealth division.
Investments AUM as at 31 December 2023 was £366.7bn.
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