IG Group to Cut 300 Jobs as Part of Cost Efficiency Strategy

The IG Group, headquartered in London, has announced a strategic plan to optimize its operations, which includes substantial cost-saving measures. This decision comes following a review of potential cost efficiency opportunities, as discussed in the group's first-quarter results announcement last month.

Acting CEO Charlie Rozes emphasized the importance of positioning IG Group as a streamlined fintech company. He stated, "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 organization."

As part of this streamlining strategy, IG Group expects to reduce its workforce by approximately 300 employees, equivalent to around 10% of its total staff. These job cuts will be completed by the end of the current financial year. Rozes reassured employees, saying, "Full support will be provided to our people throughout this process. While these decisions are not easy to take, they will ensure the business is well positioned for continued long-term success."

In addition to reducing the workforce, IG Group will implement other efficiency measures, such as expanding the use of its global centers of excellence. These initiatives are anticipated to result in annual savings of approximately £50.0 million (€57.3 million/$60.8 million) and drive operating margin expansion over the medium term.

The group also foresees structural savings of £10.0 million in FY24, with an additional £10.0 million in variable costs to be cut during the same fiscal year. These adjustments are in response to market conditions noted in the first quarter and carried into the second quarter of this year.

Looking ahead, IG Group predicts structural savings of £40.0 million in FY25 and £50.0 million in FY26. However, it should be noted that non-recurring costs associated with achieving these savings are expected to amount to approximately £18.0 million, split between FY24 and FY25.

IG Group will release its H1 FY24 results on January 25, 2024. Acting CEO Charlie Rozes has been overseeing the company since June Felix left her role last month. The board is actively searching for a permanent replacement and aims to appoint a new CEO in the coming months.