Investment firm Abrdn to cut hundreds of jobs to boost profits

The investment firm is to cut hundreds of posts in an effort to boost its profitability

Scottish investment firm Abrdn is to cut hundreds of jobs in a bid to make its business more profitable.

It hopes to save about £150m per year in the face of "challenging" market conditions.

The business said the bulk of the savings would be in non-staff costs but about 500 jobs - about 10% of its workforce - would go.

The firm's Aberdeen office is to close, with all 90 staff being asked to work from home instead.

Chief executive Stephen Bird said they were committed to taking action now to boost profitability.

"We exceeded our £75m cost-reduction target for 2023 for investments, but we recognise more needs to be done," he said.

"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."

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About £8 in every £10 that Abrdn will look to save will go through in cost savings that benefit its investments arm, which in the six months to the end of December "continued to face structural headwinds", the business said.

It added that money had flowed out of the industry across the world as global politics made investors jittery.

The cost-cutting will include removing management layers, making outsourcing and technology more efficient, and much of the saving will come from support services.

It will cost the business about £150m to carry out the cost-cutting and most of it will happen this year.

The firm has also confirmed that it is to close its Aberdeen office, with all 90 staff being asked to work from home instead.

A spokesperson said there would be no impact on job numbers and the move related to "evolving working practices" in recent years.

The Queen's Terrace office will shut in March.