Investment company aims to restore profitability and drive growth
- Abrdn plans to cut 500 jobs in a cost-reduction push
- The goal is to reduce annual costs by at least £150 million by 2025
- The cost-cutting program aims to restore profitability and reinvest in growth areas
- The shakeup will involve removing management layers, improving efficiency, and reducing overheads
- Assets under management and administration slightly declined due to business disposals
- Net outflows increased as clients shifted towards cash and de-risking
Abrdn, the FTSE 100 investment company, has revealed plans to cut around 500 jobs as part of a cost-reduction initiative. The goal is to reduce annual costs by at least £150 million by the end of 2025. The company aims to restore its core investment business to a more acceptable level of profitability and reinvest in growth areas. The cost-cutting program will involve removing management layers, improving efficiency in outsourcing and technology, and reducing overheads in support services. Despite a slight decline in assets under management and administration, Abrdn expects its adjusted operating profit for 2023 to be in line with market consensus, with adjusted capital generation above market views. Net outflows increased as clients shifted towards cash and de-risking their portfolios due to inflation and geopolitical uncertainty.
Public Companies: Abrdn (ABDN)
Private Companies:
Key People: Stephen Bird (Chief Executive)
Factuality Level: 8
Justification: The article provides factual information about Abrdn’s plans to cut jobs and reduce costs. It includes direct quotes from the Chief Executive and mentions specific figures related to the cost-cutting program. However, the article lacks additional context or analysis, and it does not provide any opposing viewpoints or potential drawbacks of the cost-cutting measures. Therefore, while the information presented is factual, the article could benefit from a more comprehensive and balanced perspective.
Noise Level: 7
Justification: The article provides information about Abrdn’s plan to cut jobs and reduce costs, but it lacks in-depth analysis or insights. It mainly focuses on the company’s financial performance and the CEO’s statement without providing much context or evidence. The article does not explore the consequences of the job cuts on employees or the potential risks and challenges the company may face. Overall, it lacks scientific rigor, intellectual honesty, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: The job cuts and cost-cutting program by Abrdn may impact the company’s financial performance and potentially affect its stock price. It could also have implications for the investment industry as a whole.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses job cuts and a cost-cutting program by Abrdn, which are financial actions that can impact the company’s performance and the investment industry. However, there is no mention of an extreme event or its impact.
www.marketwatch.com 
