Scottish investment firm Abrdn plans to eliminate hundreds of jobs to enhance profitability as it faces challenging market conditions.
The company aims to achieve annual savings of approximately £150 million, with most cost reductions coming from non-staff areas.
However, about 500 positions, representing 10 percent of Abrdn’s workforce, are set to be cut.
The firm has decided to close its Aberdeen office, transitioning all 90 employees to remote work.
CEO Stephen Bird said the firm is committed to improving profitability immediately.
He said: “We exceeded our £75m cost-reduction target for 2023 for investments, but we recognise more needs to be done.
“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.”
Abrdn intends to focus the bulk of its cost-saving efforts on its investment division, which faced structural challenges in the latter half of the previous year.
The firm said the global political uncertainties had led to widespread investor withdrawals from the industry.
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The cost-cutting will involve streamlining management layers, enhancing outsourcing and technology efficiencies, and significant savings from support services.
Implementing these reductions is expected to cost around £150 million, with most changes occurring within the year.
Abrdn confirmed the closure of its Queen’s Terrace office in Aberdeen, which is scheduled for March.
A spokesperson clarified that this move, driven by evolving work practices in recent years, would not affect job numbers.
This decision reflects a shift in workplace dynamics and the growing remote work trend.
