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British fund manager abrdn plans to axe 500 roles as part of deep cost cuts, ETHRWorld


hr.economictimes.indiatimes.com | www.ETHRWorld.com

<p>Abrdn and other active asset managers have been grappling with turbulent markets and growing competition from low-cost passive investors</p>
Abrdn and other active asset managers have been grappling with turbulent markets and growing competition from low-cost passive investors

By Iain Withers

LONDON: British asset manager abrdn confirmed plans to axe 500 roles as part of deep cost cuts on Wednesday after suffering worse than expected outflows of client cash in the second half of 2023.

Abrdn and other active asset managers have been grappling with turbulent markets and growing competition from low-cost passive investors.

The Edinburgh-based company reported net outflows of 12.4 billion pounds ($15.75 billion) for the period, more than double the 5.2 billion withdrawn in the first six months of 2023, in a trading update ahead of its full-year results next month.

Abrdn CEO Stephen Bird told reporters it was “hard sledding” for the overall fund industry, with higher interest rates making investments that tracked rates more attractive. Rivals including U.S. fund giant BlackRock were also cutting jobs, he added.

When asked about an earlier media report that said he had pitched to sell the company’s under-performing investment management arm, Bird said the company had tested every scenario but was focused on keeping and restoring the business.

The company also confirmed media reports on Tuesday, including from Reuters, that it would shed about 10% of its total workforce. Abrdn said on Wednesday it aimed to cut 150 million pounds of costs by 2025.

Abrdn shares were up…


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