Scottish financial services giant abrdn will shut its Aberdeen office as part of a drive to save £150million a year.

Ninety employees based at the firm's Granite City office on Queen's Terrace have been asked to work from home, while up to 500 colleagues from elsewhere in the business are being made redundant.

It is the end of an era for the firm, which was founded in 1983 as Aberdeen Asset Management by Martin Gilbert, George Scott and Ronnie Scott Brown.

Mr Gilbert expressed his sadness at the news yesterday, saying the office will always have a place in his heart.

“Clearly this is a sad day for the business to have to make these changes, a decision which I am sure will not have been taken lightly," he said.

“It’s only natural to feel for the staff concerned, many of whom I know personally. Working from home, supported by the company is a different operating proposition but I hope it allows the team to continue to contribute for the long term in Aberdeen.

“I well remember co-founding Aberdeen Asset Management in 1983 and moving into the office at 10 Queen’s Terrace. It will always have a place in my heart.”

Abrdn owns the building, Prince Arthur House, it currently occupies at 10 Queen’s Terrace. It will be placed up for sale in due course.

A spokeswoman for abrdn confirmed the closure yesterday.

She said: “Like many companies, we have been rationalising our property footprint as working practices have evolved over recent years.

“There is no associated impact on jobs for our Aberdeen-based colleagues and we will continue to have a team based in the north-east.

“We are working closely with our colleagues to help them transition to the new working arrangements and they will continue to play an important role across multiple departments within the company.”

At launch in 1983, Aberdeen AM consisted of the partners and some administrative support. It had assets under management (AUM) of £70million and in its first year reported a profit of £87million.

In 2016, the year before its merger with Standard Life, Aberdeen’s AUM was £312billion and its profit was £353million.

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