IG Group has revealed plans that will result in a workforce reduction of approximately 300 employees, constituting 10 percent of its total staff, by the end of fiscal year 2023. This strategic decision stems from a comprehensive review of the company’s cost-efficiency opportunities in response to current market conditions.

The company announced today that it anticipates realizing full run-rate cost savings of £50 million per year, with structural savings estimated at £10 million in fiscal year 2024, £40 million in fiscal year 2025, and £50 million in fiscal year 2026. In addition, IG Group expects to achieve an extra £10 million in cost savings in fiscal year 2024 through the reduction of variable expenses, as soft market conditions observed in Q1 continued into Q2, leading to a total annual savings of £20 million.

IG Group Workforce Reduction & Cost Savings Plan

IG Group, headquartered and listed in London, reported a total revenue of £242.9 million in the first quarter of the ongoing fiscal year. Despite notable increases in revenue from derivatives, stocks, and other investment products, the company’s interest income faced challenges.

The decision to implement cost-cutting measures coincides with a substantial decline in IG Group’s stock price. At the close of the market on Monday, IG Group’s stock was trading at £6.16, marking a 21.38 percent decrease in value for the year. This year’s performance contrasts starkly with the peak stock price of £9.5 in April 2021, a period characterized by the impact of the Coronavirus-induced market volatility.

IG Group’s cost reduction strategy is going to streamline and simplify its business operations to position itself for future growth. In an official press release, Charlie Rozes, Acting Chief Executive Officer of IG Group, commented, “We want to position IG Group as a lean fintech company, and today’s decisive actions ensure a strong platform for future growth. We will continuously evaluate and pursue cost-efficiency opportunities to create a more agile and scalable organization. Full support will be provided to our people throughout this process, and while these decisions are not easy to take, they will ensure the business is well-positioned for continued long-term success.”

Lastly, IG Group’s move to optimize its operations reflects its commitment to adapt to challenging market dynamics and position itself as a resilient and forward-looking player in the financial industry.

Also, take a look at the Broker Reviews.