Brooks Macdonald and IG Group scale back staff to cut costs
Brooks MacDonald said its job cuts are expected to result in an annualised staff cost reduction of around £4m.
Investment firm Brooks MacDonald said its job cuts are expected to result in an annualised staff cost reduction of around £4m.
The cost of the changes is forecast to be up to £3m, a non-recurring expense which it intends to exclude from its reported underlying profit.
For its full year 2024 the Brooks MacDonald continues to expect overall costs to grow in mid-single digits, in line with existing market expectations.
Andrew Shepherd, CEO of Brooks Macdonald said: «As an ambitious business, we must respond to evolving market dynamics by taking difficult decisions that will regrettably affect some of our colleagues, but make the group stronger.»
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Online trading provider IG Group is expecting to reduce headcount by approximately 300 staffers in the coming months, which represents around 10% of the total workforce.
IG Group said due to its job cuts, alongside other efficiency measures, it expects to deliver full run rate cost savings of £50m per year by 2026, and drive operating margin expansion over the medium term.
The Group anticipates structural savings of £10m by its full year 2024, increasing to £40m in full year 2025, before reaching £50m in 2026.
During the 2024 financial year, variable costs will be reduced by an additional £10m. This reflects softer market conditions, according to the group, which were disclosed in the first quarter and have continued in the second quarter, providing total savings of £20m this financial year.
Non-recurring costs to achieve the savings are expected to be approximately £18m split across the full year
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