Abrdn announces £150m cost-cutting drive with 500 jobs on the chopping block

Job Cuts: Abrdn, a UK asset management firm, is implementing a “transformation programme” involving the cut of 500 jobs.
Cost Reduction Target: The program aims for an annualized cost reduction of at least £150m by the end of 2025.
Operational Streamlining: The job cuts will impact group functions and support services in middle management to streamline operations.
CEO’s Perspective: CEO Stephen Bird emphasizes the move to “restore our core investments business to a more acceptable level of profitability.”
Business Overview: Abrdn, formed in 2017 through a merger, has three core businesses: investments, adviser, and personal. The latest trading statement shows varied results across these sectors.
Financial Results: While adviser and personal businesses show favorable results, the investments business, with £367 billion in AUMA, faced challenges in the second half of the year due to structural headwinds, geopolitical uncertainty, and high inflation.
Business Model Changes: Acknowledging the need for more profitability, Bird mentions “engineering and simplifying our business model” to allow a continued focus on building a growth business.
Implementation Costs: The anticipated changes are expected to incur implementation costs of around £150 million.