IG Group said it intends to reduce its global workforce by 10% in a bid to streamline its business and cut costs.
The brokerage plans to cut around 300 jobs by the end of its 2023 financial year. IG believes the decision, combined with other efficiency measures, will reduce costs by £50 million a year.
The broker expects structural savings of 10 million pounds in fiscal 2024, 40 million pounds in fiscal 2025, and 50 million pounds in fiscal 2026, according to Sharecast News.
The company's preliminary calculations show that variable costs will be reduced by a further £10 million in FY2024, reflecting softer market conditions. This contributes to total savings of £20 million in the current year.
IG expects the one-off cost of achieving the savings to be around £18 million, to be recognized in FY 2024 and FY 2025.
"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," said Charlie Roses, acting CEO of IG, commenting on the decision.
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