IG Group, a British online trading platform, announced the layoff of 10 per cent of its workforce. The decision is said to be a part of its broader cost-cutting initiative and will affect about 300 employees, globally, by the end of 2023.
This cost-cutting plan is aimed at contributing to the expansion of the company’s operating margins in the medium term. Furthermore, the company plans to strengthen its profit margins in response to a decrease in the number of active clients on its platforms, caused by the challenging market conditions and the impact of customers facing reduced disposable income due to the pressure of rising living expenses and borrowing costs.
The company assured that it will provide full support to its employees during this transition, acknowledging that these decisions, although difficult, are vital for positioning the business for sustained long-term prosperity.
In the previous month, the company reported a decrease in the number of active users during the first quarter of this year. However, with these strategic initiatives, IG Group expects to achieve structural cost savings of £10 million in 2024, followed by £40 million in 2025, and ultimately £50 million in 2026. It will further reduce variable costs in 2024 by an additional £10 million.
The company is also implementing other efficiency measures, such as increasing the utilisation of its ‘global centres of excellence,’ for annual cost reduction of £50 million.
As per media reports, the company expressed its intention to transform IG Group into a streamlined fintech enterprise. The statement mentioned that ongoing assessments will identify cost-efficient opportunities for building a more flexible and scalable organisation.