IG Group to cut 10% of workforce in streamlining initiative
The London-headquartered group will roll out a series of measures to support the strategy. This, IG Group says, will allow the business to become leaner, more agile and improve its flexibility.
IG Group says the decision to streamline follows a review of cost efficiency opportunities. This was mentioned by the group during its first-quarter results announcement last month.
“We want to position IG Group as a lean fintech company and today’s decisive actions ensure a strong platform for future growth,” acting CEO Charlie Rozes said. “We will continuously evaluate and pursue cost efficiency opportunities to create a more agile and scalable organisation.”
IG Group expects to cut 300 jobs
Approximately 300 jobs will be cut as part of the streamlining strategy. The group says that this represents around 10% of its total workforce. Jobs will go by the end of its current financial year.
“Full support will be provided to our people throughout this process,” Rozes said. “While these decisions are not easy to take, they will ensure the business is well positioned for continued long-term success.”
Together with other efficiency measures, including expanding the use of its global centres of excellence, IG Group expects to save around £50.0m (€57.3m/$60.8m) per year. IG Group adds that these initiatives will drive operating margin expansion over the medium term.
The group anticipates structural savings of £10.0m in FY24. An additional £10.0m in variable costs will be cut in FY24, reflecting softer market conditions as set out in its Q1 posting. These, IG Group says, have continued into Q2.
As for the following years, IG Group says structural savings will likely amount to £40.0m in FY25 and £50.0m in FY26.
Non-recurring costs to achieve the savings are expected to be approximately £18.0m, split across FY24 and FY25.
IG Group will announce its H1 FY24 results on 25 January 2024.
Rozes takes temporary charge
Rozes has been serving as interim CEO since June Felix left the role last month. Felix began a period of medical leave in July but agreed with the board that she would step down at the end of September.
The board is currently searching for a replacement and expects to appoint a permanent CEO in the coming months.
Felix was appointed as CEO in October 2018, having served as a non-executive director from September 2015. She had previously held senior positions at Verifone, IBM and Citibank.