Abrdn confirms cuts to employee benefits

Abrdn plc HQ, Edinburgh

Edinburgh investment group Abrdn has confirmed media reports that it has slashed employee benefits as part of a fresh round of cost cuts.

The cuts include the halving of redundancy payouts and a reduction in the length of paid parental leave by about a third.

Abrn will introduce a 52-week cap on redundancy payments from January, 2024 — and from June these payouts will be dropped from four to two weeks per year of service.

Paid parental leave is being cut from 40 to 26 weeks with effect from October, 2024, after employees lobbied to have the date pushed back from April.

A policy that allows a phased return from parental leave on full pay over three months will also be axed from October, 2024.

An Abrdn spokesperson said: “We continue to offer a leading employee proposition that compares well with other large employers in the sector and more widely.

“These updates to our approach mean that abrdn is aligned both to market practice and our ambition to deliver a more efficient operating model.”

In August, Abrdn said its assets under management and administration slipped 1% to £496 billion in the first half of 2023 as it reported net outflows “excluding liquidity” of £4.4 billion.

Abrdn said positive flows of £1.9 billion at its Interactive Investor (ii) business were “offset by outflows” in its investments unit and adviser business.

Abrdn said its first-half net operating revenue was 4% higher at £721 million with growth in its adviser and personal businesses offsetting lower revenue in its investments division.

Adjusted operating profit for the first half was up 10% to £127 million, but Abrdn reported IFRS loss before tax of £169 million (H1 2022: loss £326m) “largely driven by the fall in market value of our listed stakes.”

Interim dividend was unchanged at 7.3p.