The London-based group, IG Group, is implementing a series of measures to support its strategy. These actions aim to make the company more streamlined, agile, and flexible. The decision to streamline follows a review of cost efficiency opportunities mentioned by the group in its first-quarter results announcement. Acting CEO Charlie Rozes stated that they want to position IG Group as a lean fintech company and the actions taken ensure a strong foundation for future growth.
As part of the streamlining strategy, approximately 300 jobs, which represent around 10% of the total workforce, will be cut by the end of the current financial year. Despite the difficulty of these decisions, IG Group will provide full support to affected employees, as these measures ultimately position the business for long-term success.
To achieve cost savings, IG Group plans to expand the use of its global centers of excellence and expects to save around £50.0m per year. These initiatives will also drive operating margin expansion over the medium term, with anticipated structural savings of £10.0m in FY24. To accommodate softer market conditions, an additional £10.0m in variable costs will be cut in FY24, as outlined in the Q1 posting. Looking ahead, IG Group estimates structural savings of £40.0m in FY25 and £50.0m in FY26. Non-recurring costs to achieve these savings are expected to be approximately £18.0m, spread across FY24 and FY25.
Rozes has been serving as interim CEO since the departure of June Felix. The board is actively searching for a permanent replacement, with expectations to appoint a new CEO in the coming months. Felix, who was appointed as CEO in October 2018 and had previously held senior positions at Verifone, IBM, and Citibank, began a medical leave in July and agreed to step down at the end of September.
IG Group will announce its H1 FY24 results on 25 January 2024.
