CMC Markets to axe 200 jobs as the online trading platform looks to save £21m

05 February 2024 , 12:23

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CMC Markets founder Peter Cruddas. The online trading platform is cutting its global workforce by 17% (Image: No credit)

Around 200 jobs are being axed at CMC Markets as the online trading platform looks to slash costs by £21 million a year.

The London-based firm, founded by Conservative peer Lord Peter Cruddas, is cutting its global workforce by about 17% to "drive efficiencies and control costs". CMC is making savings by merging its support teams, streamlining reporting lines and automating processes.

"The group continues to focus on driving efficiencies and making structural savings across its global operations," CMC said. This comes after a slump in deals last year, with investment banks axing jobs and consolidation ramping up among City brokerages. CMC's cost saving plans look set to deliver savings of £21 million a year in 2024-25.

The firm has 14 offices worldwide, including its London headquarters, with operations also across financial centres such as Germany, France, Singapore and Australia. Shares in the group jumped 13% in early trading on Monday, with the group confirming it remains on track with its recently increased earnings outlook.

CMC said last month it was expecting net operating income for the year to March 31 of between £290 million and £310 million, up from the previously guided £250 million to £280 million range, thanks to improved market conditions. CMC stated in November last year that the business was "reaching the peak of its investment cycle" and that it was reviewing costs.

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The challenging trading conditions since the start of 2023 have led to a surge in mergers and acquisitions among City firms. Last month, former Barclays boss Bob Diamond's City broker Panmure Gordon agreed to merge with rival Liberum, while stockbrokers FinnCap and Cenkos made a £45 million deal last year, and Numis was bought by Deutsche Bank.

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Lawrence Matheson