CMC Markets has announced a significant workforce reduction, revealing plans to cut 17% of its staff, equivalent to approximately 200 positions. This strategic decision is part of the company’s broader initiative to enhance cost efficiency.
The London-based brokerage anticipates incurring a one-time cost of £2.5 million in the fiscal year 2024 due to the layoffs. However, the move is projected to yield annual savings of £21 million in fiscal year 2025, constituting an 18 %reduction in consensus staff costs.
In an official statement, CMC Markets emphasized its ongoing commitment to driving efficiencies and structural savings on a global scale. The cost-cutting measures involve the consolidation of support functions across various business lines, the streamlining of reporting lines, and the implementation of automated processes.
CMC Markets Workforce Reduction by 17% – Cost-Cutting Initiative
“The Group will continue to seek opportunities to drive efficiencies and control costs while remaining committed to investing in growth opportunities and ensuring its technology remains market-leading,” the company stated.
Last month, CMC Markets revised its income forecast for fiscal year 2024, anticipating a closing range between £290 million and £310 million, reflecting an increase of £40 million. Despite this positive outlook, the brokerage closed the first half of the ongoing fiscal year with a pre-tax loss of £2 million, as net operating revenue declined by 20 %to £122.6 million.
The company’s cost-cutting move follows the appointment of Albert Soleiman as the new Chief Financial Officer in September, succeeding Euan Marshall, who retired from the role and the CMC board.
Notably, CMC Markets is not the only brokerage taking drastic measures to reduce costs. In the previous year, its local competitor, IG Group, implemented a 10 %reduction in its global workforce, affecting approximately 300 positions. This cost-cutting initiative also led to the departure of executives, including Robert van Eyden, the CEO of South African operations, and Kevin Algeo, the former CEO of APAC and Africa, who had been with the broker for the past decade.
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