Clients have pulled billions from investment giant Abrdn as it begins cutting hundreds of jobs as part of a “cost saving overhaul”.
It comes after the Edinburgh-based company said last month that it wanted to save around £150m per year, and would cut around 500 jobs as a result.
The firm, which rebranded from Standard Life Aberdeen in 2021, said the cuts will take place this year and be completed by the end of 2025.
Abrdn said clients have pulled billions from the investment company as it begins major cuts this year.
It came as the fund manager and wealth specialist saw its pre-tax loss shrink to £6m for last year, reducing from a £612m loss.
It also reported £13.9bn in net outflows during 2023 as many clients withdrew funds.
Stephen Bird, chief executive officer of Abrdn, said: “Over the past three years we have reshaped the business to fit the modern investment landscape.
“We now have content and distribution aligned to the products and services clients need, and we are better positioned for future growth.
“We are taking action to rebuild and grow profit in our investments business.
“We have sharpened our focus on improving investment performance, streamlined our fund range, reduced costs by £102m in 2023, exceeding our £75m target and we announced a new cost-saving programme of at least £150m on January 24.
“Our balance sheet remains strong which enables us to fund our cost transformation while continuing to strategically invest in growth areas and maintain our dividend.”
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