IG Group slashing 10 per cent of its workforce in cost-cutting drive to save £50m yearly
IG Group said this morning that it expects to cut around 300 jobs as part of a wider cost-cutting programme.
The job cuts make up around 10 per cent of IG Group’s total workforce at the end of the 2023 financial year.
Alongside other “efficiency measures”, such as expanding the use of its ‘global centres of excellence’, the trading firm said it expects the measures will deliver cost savings of £50m a year.
It anticipates making structural savings of £10m in 2024, £40m in 2025 and £50m in 2026. Variable costs in 2024 will be reduced by an extra £10m reflecting “softer market conditions”.
This will help drive operating margin expansion over the medium term, IG Group said.
The cuts come as trading firms struggle with falling volumes amid a cost-of-living squeeze. Last month the firm said that active users fell in the first quarter of this year.
“We want to position IG Group as a lean fintech company and today’s decisive actions ensure a strong platform for future growth,” Charlie Rozes, acting Chief Executive said.
“We will continuously evaluate and pursue cost-efficiency opportunities to create a more agile and scalable organisation. 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,” he continued.