IG Group axes 300 jobs to save £10 million in 2024
Spread betting and CFDs broker IG Group announced its plan to cut around 300 jobs, roughly 10% of its total workforce as of the end of the 2023 financial year.
The UK-listed broker said this decision is part of a larger initiative aimed at reducing costs and streamlining operations in response to the current market environment.
The company expects to achieve structural savings of £10 million in 2024, with this figure rising to £40 million in 2025 and £50 million in 2026. In addition, variable costs in 2024 are projected to be cut by an additional £10 million due to the continued softer market conditions that have been prevalent since the first quarter.
These measures are being implemented as brokerage platforms, including IG Group, face reduced trading volumes due to wider economic pressures. A decline in active users was reported by IG Group in the first quarter, reflecting broader industry trends.
The FTSE 250-listed firm said that its total number of active clients stood at 358,300 compared to 381,500 a year earlier. Although this figure decreased by 6 percent, it still remains more than double the number of clients before the pandemic. First trades reduced as anticipated, but also remain well above pre-pandemic levels, the broker said.
Charlie Rozes, Acting Chief Executive Officer, 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 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.”
June Felix, who led IG Group as chief executive officer for the past five years, resigned in August from the company and the board of directors. During her absence, Charlie Rozes assumed the role of acting CEO to handle the day-to-day responsibilities in addition to his current position as CFO.
Charlie Rozes has an extensive background in the financial industry. He began his professional career at PricewaterhouseCoopers LLP and later became a Partner with the firm in 2001. Throughout his career, he has held various senior executive roles, including positions at IBM and Bank of America.