abrdn cuts employee benefits to reduce costs - reports
This marks the latest cost-cutting exercise at the UK asset manager, a programme which started in September 2020 to recover the firm’s share price.
The benefits affected included redundancy pay and parental leave, according to the Financial Times.
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The group will introduce a 52-week cap on redundancy payments from 2024, with payouts set to be dropped from four to two weeks per year of service.
Paid parental leave is also being cut, from 40 to 26 weeks, effective from October 2024. The company's policy, which allowed a phased return to the workplace from parental leave on full pay over three months, will also be dropped from October 2024.
The move marks the latest cost-cutting exercise for the UK asset manager, a programme which started in September 2020 to recover its share price. Measures since then have included the closure, restructuring or merger of more than 100 funds, and the reduction of the multi-asset team by a fifth.
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abrdn's share price has suffered since September 2020, opening the month at 224.9 pence per share, compared to a current share price of 183.3p as of 15 December 2023 — a 19.5% drop, according to data from the London Stock Exchange .
A spokesperson for abrdn told Investment Week: «We continue to offer a leading employee proposition that compares well with other large employers in the sector and more widely. These updates to our approach mean that abrdn is aligned both to market practice and our ambition to deliver a more efficient operating model.»
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