IG Group to cut 10% of workforce

IG Group said on Tuesday that it was planning to cut around 10% of its worldwide workforce as it looks to cut costs and streamline the business.

The online trading company plans to axe around 300 jobs at the end of FY23. Alongside other efficiency measures, including expanding the use of its global centres of excellence, this is expected to deliver full run rate cost savings of £50m a year.

IG expects structural savings of £10m in FY24, £40m in FY25 and £50m in FY26.

In FY24 specifically, variable costs will be reduced by an additional £10m, reflecting softer market conditions disclosed in the first quarter, which have continued into Q2, providing total savings of £20m this year.

Non-recurring costs to achieve the savings are expected to be around £18m split across FY24 and FY25.

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."