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About 500 headcounts to be reduced at Abrdn by end-2025

About 500 headcounts to be reduced at Abrdn by end-2025

This is a result of a new transformation programme the company has implemented to restore its core investments business "to an acceptable level of profitability," the company said in an update.

Around 500 roles at Abrdn will be reduced by the end of 2025 as a result of the organisation implementing a new transformation programme, set to take place in 2024 and be completed in 2025. 

The transformation programme, according to a recent trading update by Abrdn, targets an annualised cost reduction of at least £150mn, in comparison to 2023, with an estimated 80% of the savings benefitting the Investments business.

In addition, the bulk of the savings will be in non-staff costs and is expected to result in the above-mentioned reduction of approximately 500 roles.

Further, the programme will include the following:

  1. the removal of management layers,
  2. increasing spans of control,
  3. further efficiency in outsourcing and technology areas, and
  4. reducing overheads in group functions and support services.

This target will exclude any cost reduction from previously announced divestments, including the sale of the organisation's European-headquartered private equity business.

With the implementation of the programme expected to commence primarily in 2024, and completed by the end of 2025, Abrdn said it will streamline its operations and management structure, enabling the Group to "deploy its resources more efficiently and improve management accountability."

In addition to the new transformation programme, Abrdn shared an update on its year-end 2023 assets under management & administration (AUMA), including second half 2023 net flows, and revenue margin guidance. 

Looking ahead, the company said intends to provide the market with a trading update for the first and third quarters of 2024, which will include AUMA and net flows. 

CEO of Abrdn, Stephen Bird shared that despite the challenging market conditions, Abrdn is committed to restoring its core Investments business "to a more acceptable level of profitability." 

"After a root and branch review, we are now re-engineering and simplifying our business model to remove at least £150m of costs – mostly from group functions and support services."

"These changes will allow us to continue our focus on building a growth business," he added.

READ MORE: Resurge witnessed in Hong Kong’s job-seeking activities

Lead image / 123RF

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