By Iain Withers
LONDON (Reuters) - British fund manager abrdn is poised to cut about 10% of its workforce, a source close to the matter told Reuters, as it seeks to rein in costs and improve its fortunes after years of bleeding client cash.
The company is due to publish a trading statement on Wednesday that will update investors on client flows and trading for the second half of 2023.
The planned job cuts will amount to hundreds of staff, the source said, from a total workforce of nearly 5,000. The plan was first reported by Sky News.
Abrdn CEO Stephen Bird has been driving a turnaround plan that includes cost cuts and expansion into UK mass-market investing through its acquisition of investment platform interactive investor in 2022.
Shares in abrdn closed 3.2% down at 172.3 pence, underperforming the wider market.
The Edinburgh-based fund manager formed by the 2017 merger of Standard Life (LON:ABDN) and Aberdeen Asset Management shed some jobs last year and sold non-core assets, but this week's update is set to demonstrate that the restructuring is not over.
Like other mid-sized fund managers, abrdn has found itself squeezed by institutional clients pulling cash, the threat of low-cost passive investing, a challenging economic environment and high cost base.
Abrdn hired Boston Consulting Group to advise on a further 200 million pounds in cost cuts, Bloomberg reported in November.
Assets under management stood at 496 billion pounds ($627.8 billion) in June last year, down from 500 billion pounds six months earlier.
Shares in the group have lost half their value since the 2017 merger.
($1 = 0.7901 pounds)