The FTSE 250-listed manager is set to announce roughly 500 job cuts tomorrow morning (23 January), with the cost-cutting drive first reported by Sky News.
abrdn seeks to reassure shareholders after AGM pushback
Investment Week understands that fund managers are not in the scope of the headcount reduction, which is set to trim roughly 10% of the firm’s workforce. The redundancies are understood to mostly affect back office roles.
Alongside the redundancies, abrdn is due to produce a trading update in the morning, which is predicted to disclose billions of pounds of outflows during H2 2023.
The firm’s H1 2023 results revealed profits across abrdn’s investment arm had fallen 66%, with redemptions of £6.5bn over the period, although a much-reduced figure on H1 2022’s £37.3bn asset withdrawal.
abrdn to pour six months’ worth of management fees into UK investment trust range
In October, the firm agreed to sell its £7.5bn European-headquartered private equity business to Patria Investments in a £100m deal, following a strategic review of its alternatives division.
CEO Stephen Bird reportedly sought to offload the firm’s investment arm following its takeover of interactive investor, although this was voted against by the board.
At its November AGM, shareholders approved five of its resolutions with less than 80% support, leading to the firm meeting with shareholders to understand the rationale behind the votes.
In December, head of listed funds at abrdn Christian Pittard confirmed an initiative that will see the firm reinvest six months’ worth of management fees into the shares of its UK investment trust line-up.
