CMC Markets to reduce headcount by 17%
CMC Markets to reduce headcount by 17%
On Monday, broker CMC Markets announced that it will reduce its staff by 17%, in line with its cost-cutting strategy unveiled in November 2023.
The stock rose 13% on the news but is still down 39% year-to-date.
The company expects the job cuts to result in savings of £2.5 million in fiscal year 2024, but they will result in savings of £21 million as early as next year.
CMC Markets said the cost reductions will be achieved primarily by consolidating support functions across multiple business lines, streamlining reporting lines, and automating processes.
"The group will continue to look for opportunities to improve efficiency and control costs while remaining committed to investing in growth and ensuring its technology is market-leading," the company said.
The broker also reiterated its updated forecast for annual net operating profit of between £290 million and £310 million. The previous guidance was in the range of £250 million to £280 million.
CMC Markets adjusted its forecast for early 2024 due to changing market conditions that have encouraged traders to return to equities, indices, and gold.
Analysts now expect the company to end fiscal year 2024 with a net operating income of £265.3 million and a pre-tax profit of £10.6 million.
The broker ended the first half of the current fiscal year with a pre-tax loss of £2 million, as net operating income fell 20 percent to £122.6 million.
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