Abrdn planning to axe hundreds of jobs in cost-cutting drive - report

Fund manager Abrdn is reportedly preparing to axe hundreds of jobs in a cost-cutting drive aimed at boosting its flagging performance.

According to Sky News, Abrn will announce proposals for a round of redundancies alongside a hastily scheduled trading update on Wednesday morning.

It was unclear whether Abrdn would give a precise figure for the headcount reductions, although one market source said that it could affect in the region of 10% of its workforce of nearly 5,000 people.

Analysts expect the company - formed from the 2017 merger of Aberdeen Asset Management and Standard Life - to report that it has suffered billions of pounds in additional fund outflows during the second half of 2023.

Last month, the Financial Times reported that Abrdn was cutting employee benefits such as paid parental leave in an effort to exert a firmer grip on costs.

Abrdn declined to comment on the Sky News story.