Investment manager and Financial Planner Abrdn has confirmed that it will cut 500 jobs as part of a £150m cost cutting programme.

The roles will be made redundant by the end of 2025.

The investment giant said 80% of the anticipated savings from the cost cutting programme would come from its investments business.

It said the plan includes the removal of management layers, further efficiency in outsourcing and technology and reducing overheads in group functions and support services.

Abrdn said the cost cutting programme was designed to restore its core investment business to an acceptable level of profitability.

Stephen Bird, CEO of Arbdn, said: "Market conditions have remained challenging for our mix of business, and this is reflected in our year-end AUMA, flow numbers, and margins. The board and I are committed to taking these significant cost actions now to restore our core investments business to a more acceptable level of profitability.

“Although our business model benefits from the diversification that comes from operating three businesses, we will not rest until all of them are contributing strongly to group profitability, as adviser and interactive investor have done in 2023.”

Abrdn also reported net outflows of £12.4bn in the second half of 2023 in a trading update this morning, with outflows in investments and adviser businesses partly offset by positive flows in its direct-to-consumer business.

Group assets under management ended the half at £494.9bn.

The adviser business saw net outflows of £1.5bn in the second half of 2023, with the third quarter seeing the lowest adviser platform market net flows on record. Abrdn said the outflows reflected economic uncertainty and the impact of the cost of living crisis on disposable incomes.

Despite the net outflows, Abrdn’s adviser business saw a 2% increase in assets to £73.5bn (compared with 30 June 2023).

Institutional and retail wealth net outflows from the investments business were £11.2bn for the second half of 2023.

Abrdn will release its full year results on 27 February.