CMC Markets cutting 17% of its workforce to slash costs

The online trading platform – founded by Conservative peer Lord Peter Cruddas – said it was axing around 200 roles worldwide.

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

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-headquartered firm – founded by Conservative peer Lord Peter Cruddas – said it was cutting its global workforce by about 17% to “drive efficiencies and control costs”.

CMC said it was 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.

It 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.

But CMC had also said in November last year that the business was “reaching the peak of its investment cycle” and that it was reviewing costs.

The difficult trading conditions seen since the start of 2023 has sparked a wave of mergers and acquisitions across City firms in recent months.

Former Barclays boss Bob Diamond’s City broker Panmure Gordon agreed last month to merge with rival Liberum, while stockbrokers FinnCap and Cenkos struck a £45 million tie-up last year, and Numis was snapped up by Deutsche Bank.