IG Group takes steps to streamline the business

(PRESS RELEASE) -- IG Group announced it is beginning measures to simplify and streamline the business, better positioning it for further growth. These actions will start to create a leaner, more agile business and further enhance the Group's flexibility to innovate and deliver a world-class client experience. The actions are the result of a review of cost efficiency opportunities, as indicated in recent results announcements.

The Group expects to reduce headcount by approximately 300, which represents around 10% of the total workforce at the end of FY23. Alongside other efficiency measures, including expanding the use of its global centres of excellence, the Group expects to deliver full run rate cost savings of £50 million per year. These initiatives are expected to drive operating margin expansion over the medium term.

The Group anticipates structural savings of £10 million in FY24, £40 million in FY25 and £50 million in FY26. In FY24 specifically, variable costs will be reduced by an additional £10 million reflecting softer market conditions disclosed in Q1, which have continued in Q2, providing total savings of £20m this year.

Non-recurring costs to achieve the savings are expected to be approximately £18 million split across FY24 and FY25.

Charlie Rozes, Acting Chief Executive Officer, commented: "We want to position IG Group as a lean fintech company and today's decisive actions ensure a strong platform for future growth. We will continuously evaluate and pursue cost efficiency opportunities to create a more agile and scalable organisation. Full support will be provided to our people throughout this process, and while these decisions are not easy to take, they will ensure the business is well positioned for continued long-term success."

As previously announced, IG Group will announce H1 FY24 results on 25 January 2024.