Fund manager Abrdn sheds staff

HUNDREDS of jobs are poised to go at top fund manager Abrdn in the latest blow to Britain's financial services.

Around 500 out of 5,000 roles are expected to go as the group aims to reduce costs by around £75m at its main investment division. Abrdn is expected to unveil the cuts alongside a trading update today by Steve Bird, the chief executive, according to Sky News.

Shares have struggled in recent years and the fund manager continues to clock up outflows.

The Abrdn cuts are the latest to dent UK financial services after Barclays slashed 5,000 jobs last year and Metro Bank outlined plans to cut 850. Citi could also cut hundreds of jobs in the UK in a significant restructure, while 2,500 roles are at risk at Lloyds Bank.

Mr Bird has moved fast to try to shore up the misfiring company, snapping up Interactive Investor for £1.5bn last year in an attempt to boost Abrdn’s consumer focus and make the firm a nimble tech player. The deal helped expand

Abrdn’s tech focus but raised questions over the future of its traditional fund management division.

Mr Bird reportedly discussed selling the investment management division following the acquisition but the board decided against the move. To slow the downturn, Abrdn has instead turned to a cost-cutting drive to improve the performance of shares. The stock is down 15pc in the past year alone.

In August, Abrdn said it had cut £30m of costs from the investment business owing to a 9pc reduction in front and middle office workers. It aims to cut £75m in total.

Abrdn is also reducing its office space to save money. It moved its Edinburgh offices to cheaper premises earlier this year as part of the austerity drive.

Abrdn suffered a pre-tax loss of £169m for the half year ending June 2023 and shares are down 70pc since their 2015 high point.

The company was formed from a merger of Aberdeen Asset Management and Standard Life in 2017. Abrdn declined to comment.