IG Group is trying to strengthen its margins as the number of active clients on its platforms drops due to tough market conditions and a hit to customers’ disposable income because of cost-of-living pressures and increasing borrowing costs
British online trading platform IG Group on Tuesday said it would cut 10% of its headcount as part of cost-saving measures to drive operating margin expansion and become a leaner fintech company.
IG Group is trying to strengthen its margins as the number of active clients on its platforms drops due to difficult market conditions and a hit to customers’ disposable income because of cost-of-living pressures and increasing borrowing costs.
The company said it expected to reduce nearly 300 positions worldwide by the end of fiscal 2023, adding that the overall efficiency measures are expected to deliver full run rate cost savings of £50 million ($60.7 million) per year.
We want to position IG Group as a lean fintech firm and today’s decisive actions ensure a strong platform for future growth, acting Chief Executive Officer Charlie Rozes said in a statement.
The firm said non-recurring costs to achieve the savings are expected to be around £18 million split across fiscal years 2024 and 2025.
Last month, the company said its total active users (TAU) across all markets and products in the first quarter that ended on August 31 dropped to 267,000 compared to 279,300 a year earlier.
Specialist recruitment firm Morgan McKinley said on Monday that London’s financial services jobs market went into decline in Q2, citing a summer slowdown in hiring and the end of post-pandemic resilience seen among many financial firms.
As per its 2023 London Employment Monitor, there was a 34% drop in job seekers and 31% drop in jobs available in London’s financial sector in Q2, compared to the previous year.