More than 200 jobs will be slashed at CMC Markets, the investment platform founded by Tory peer Lord Peter Cruddas.
In an update issued to the market this morning, the platform said it would cut around 17 per cent of its headcount in a bid to “drive efficiencies and control costs.”
CMC markets raised its full-year operating income guidance at the end of January, after recording more activity on its platforms towards the end of the year.
The online financial trading company said it performed strongly in the third quarter, helped by “an improvement in market conditions.”
Despite this, the company said this morning that November showed it was “reaching the peak of its investment cycle” and a cost review was “planned” for the second half of the year, focused on “driving efficiency.”
It said the review had been “successfully completed and as a result the group will be reducing global headcount by approximately 200 positions, representing circa 17 per cent of existing headcount.”
CMC said it will also take a “one-off, non-recurring cost of circa £2.5m” due to the layoffs with estimated cost savings of £21m for fiscal 2025, a reduction of 18 per cent.
The company said merging some functions across the business and “streamlining”, as well as “automating processes” would help drive the bulk of the cost reductions.
The company added it would “continue to seek opportunities to drive efficiencies and control costs.” It added it was trading was in line with expectations for the current year with operating income of £290m to £310m projected. It will report on 9 April.