IG Group, a London-based company, has announced plans to reduce its global staff by 10% to simplify and streamline its business operations. The decision to streamline follows a review of cost efficiency opportunities, highlighted during the company’s first-quarter results announcement last month.
Acting CEO, Charlie Rozes, stated, “We want to position IG Group as a lean fintech company and today’s decisive actions ensure a strong platform for future growth.” Approximately 300 jobs will be cut as part of the streamlining strategy, representing around 10% of its total workforce, by the end of its current financial year.
The company plans to provide full support to affected employees throughout this process to minimize negative impacts. IG Group expects to save around £50.0 million per year through efficiency measures and aims to drive operating margin expansion over the medium term.
Structural savings of £10.0 million in FY24 and £10.0 million in variable costs will be cut in FY24, reflecting softer market conditions as set out in its Q1 posting, which have continued into Q2. Furthermore, the company anticipates additional structural savings of £40.0 million in FY25 and £50.0 million in FY26.
Non-recurring costs to achieve the savings are expected to be approximately £18.0 million, split across FY24 and FY25. IG Group will announce its H1 FY24 results on 25 January 2024. Charlie Rozes has been serving as interim CEO since June Felix stepped down from the role. The board is currently searching for a permanent replacement, expecting to appoint a new CEO in the coming months.
Felix, who was appointed as CEO in October 2018, having served as a non-executive director from September 2015, had to take a period of medical leave in July and agreed with the board to step down at the end of September.IG Group highlighted that the decision to streamline its global staff headcount is part of its wider plans to simplify and streamline its business operations. These are aimed at making it leaner, more agile, and improving its flexibility.