Hundreds of jobs on chopping block in Abrdn overhaul

Global investment firm Abrdn (LSE: ABDN) is preparing to announce significant job cuts on Wednesday representing nearly 10% of its staff. The reductions are part of a major restructuring aimed at trimming costs, according to a report by Sky News on Tuesday.

The FTSE 250 fund manager will reveal the workforce reduction plans in a hastily scheduled trading update before the London market opens. The announcement comes as abrdn struggles with outflows and lacklustre share price performance that has lagged the broader market.

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While specific details won’t emerge until Wednesday, the cuts could impact hundreds of positions across Abrdn’s global workforce of around 5,000 people. The downsizing follows a difficult period for the £3.5 billion investment giant. Assets under management shrank in the first half of 2023 amid turbulent market conditions.

The trading update will likely emphasise the need for “right-sizing” the business to weather ongoing storms. But while major staff cuts point to challenges, Abrdn has expressed confidence in its leadership and future. The workforce trimming appears targeted at boosting efficiency and calming shareholder concerns.

Shares in Abrdn were flat at 176.10 pence by lunchtime on Tuesday. Over the past 12 months, the stock has dropped 14% and the company fell out of the FTSE 100 in September.