IG Group to axe 300 roles amid cost-cutting drive
The move will reduce IG Group’s workforce by about 10% and marks the latest in a swathe of job cuts across the City.
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Your support makes all the difference.Online trading firm IG Group has revealed plans to axe around 300 jobs as part of an overhaul to save £50 million a year.
The group said the cuts will reduce its workforce by about 10% as it struggles amid tougher trading in financial markets.
In a further sign of the more difficult market conditions, investment management firm Brooks Macdonald Group also announced separately on Tuesday that it was cutting about 55 roles to save £4 million a year.
There has been a swathe of job cuts across the City in recent months as firms retrench in the face of a dearth of deals and rising costs.
We want to position IG Group as a lean fintech company, and today’s decisive actions ensure a strong platform for future growth
Barclays and Citi are among those who have been slashing jobs in response, while accountancy firms such as KPMG have also been axing roles due to a slowdown in dealmaking in the City.
IG Group said “softer” market conditions seen in its first quarter had continued into the second quarter.
Its cost-cutting actions also include increasing the use of its “global centres of excellence”, with the aim of making structural savings of £10 million this financial year, rising to £40 million in 2023-24 and £50 million in 2024-25.
In response, it is also reducing its variable costs by an extra £10 million this financial year.
Acting chief executive Charlie Rozes said: “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.”
On the Brooks Macdonald job cuts, chief executive Andrew Shepherd added: “As an ambitious business, we must respond to evolving market dynamics by taking difficult decisions that will regrettably affect some of our colleagues, but make the group stronger.”