Cruddas’s trading firm to cut 200 jobs in City downturn
LORD CRUDDAS’S CMC Markets has joined the list of businesses culling jobs in response to a downturn in the City.
The foreign exchange and spread betting company will axe 200 roles, equal to about 17pc of its head count, in an effort to reduce costs.
It comes after CMC announced plans in November to boost efficiency across its global operations after operating costs jumped 15pc to £121.9m.
Cost savings were made by merging support roles across multiple divisions, simplifying chains of command, and automating processes, CMC said in a trading update yesterday.
It becomes the latest British business to announce sweeping redundancies as higher interest rates and inflationary pressures weigh on demand.
Lloyds Bank is preparing to cut 1,600 jobs from its branch network as the lender increasingly moves into online banking.
Barclays and Metro have also slashed roles following increased automation of banking services.
Britain’s financial services sector is not alone in cutting jobs as Germany’s Deutsche Bank also announced 3,500 layoffs last week.
CMC is among the online investment firms that have faced a slowdown in activity ever since the pandemic trading boom fizzled out.
The London-listed company has said it predicts savings of £21m in 2025, with this year’s income expected to fall between £290m and £310m.
CMC said: “The group will continue to seek opportunities to drive efficiencies and control costs while remaining committed to investing in growth opportunities and ensuring its technology remains market-leading.”
The business was founded in 1989 by Lord Cruddas, the Conservative peer once described as the wealthiest man in the City.
The prominent Brexiteer and former banker, who was ennobled by the then prime minister Boris Johnson in 2020, owns 59pc of the business.
CMC’S share price rose by more than 16pc after yesterday’s announcement.