UK's CMC Markets to cut 17% of global staff
Reuters
Published Feb 05, 2024 07:22
(Reuters) -CMC Markets said on Monday it would cut its global headcount by about 200 positions, representing 17% of its overall staff, as the online trading platform completed a cost review.
CMC Markets said it expected to incur a one-off, non-recurring cost of about 2.5 million pounds ($3.2 million) this fiscal year due to the job cuts, with an estimated annualised savings of 21 million pounds to be realised in the 2025 financial year.
Trading platforms had seen a surge in revenue during the pandemic and in 2022 following Russia's invasion of Ukraine as market volatility jumped.
However, trading activities were relatively more subdued in 2023, despite a year-end uptick in volatility amid the Middle East conflict benefiting these platforms.
"Cost reductions have been primarily achieved by merging support functions across multiple business lines, streamlining reporting lines and automating processes," the London-listed company said in a statement.
CMC said trading remained in line with its expectations and the group was on track to deliver net operating income of between 290 million pounds and 310 million pounds for the current financial year.
($1 = 0.7931 pounds)
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Written By: Reuters
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