abrdn launches 'transformative' £150m cost cutting programme with 2025 deadline
Stephen Bird (pictured), abrdn CEO announced the firm would be embarking on a “transformation programme”, targeting a £150m reduction by 2025.
It was revealed yesterday (23 January), that the Edinburgh based asset manager was letting around 500 members of its staff go, a cohort which excludes fund managers as they were ringfenced from the endeavour.
Fund managers ringfenced from upcoming abrdn job cuts
Today, abrdn explained the scale of the new operation, which CEO Stephen Bird described as a «transformation programme».
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."
Bird said: «The programme will largely be implemented in 2024, completing in 2025. These changes will allow us to continue our focus on building a growth business.»
The new £150m target is in addition to any cost reduction from previously announced divestments, including the sale of our European-headquartered private equity business.
It will include the removal of management layers, increasing spans of control, «further efficiency in outsourcing and technology areas», as well as reducing overheads in group functions and support services.
abrdn cuts back on 'niche' ABS team in bid to keep up with UK trends
According to abrdn, the bulk of the savings will be in non-staff costs, although it is expected to result the aforementioned dissolvement of around 500 people roles.
The management said this would result in more «streamlined operations», which in turn, will enable the group to utilise its resources «more
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