Abrdn’s Big Money Moves: Clients Pull & the Firm Pulls Cuts
It’s a classic “when the money flows out, the money cuts in” story. Abrdn, once a bright‑star in the investment world, just learned that its clients are withdrawing billions. To keep the ship afloat, the company is tightening its belts, slashing 500 jobs and promising a whole slice of £150 million in savings.
What’s been happening?
- 2023 loss – Pre‑tax loss of £6 million.
- Job cuts – January saw the announcement of 500 staff reductions.
- Cost‑cut pledge – A new programme aimed at trimming at least £150 million.
- Outflows history – In 2003, Abrdn juggled a £13.9 billion net outflow, lowering operating revenue by 4%.
- Outflow impact – 2003’s exodus added a £152 million hit from restructuring and corporate expenses.
CEO Stephen Bird on the shift
“Over the past three years we have reshaped the business to fit the modern investment landscape,” Bird told investors. “Now we have content and distribution aligned to the products and services clients need, and we’re better positioned for future growth.”
He added, “We’re re‑building and growing profit in our investments business. We sharpened our focus on improving investment performance, streamlined our fund range, reduced costs by £102 million in 2023— exceeding our £75 million target—and announced a new cost‑saving programme of at least £150 million on January 24.”
What this means for clients
Clients who previously felt the urge to pull their money out are likely to find a calmer, more efficient operation. Lower expenses and a leaner team should translate into steadier returns—if the cuts are managed well.
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