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CMC to axe 200 Jobs as mass City cuts looms

By Nithya Bose in UK Employment news, posted February 7, 2024

CMC Markets is to eliminate 200 positions, or 17 percent of its workforce, amid mass job cut fears in London's financial district.

The announcement follows a trend of significant job cuts by large American banks, attributed to a decrease in deal-making activities that have adversely affected revenue streams in both Wall Street and the City.

Recent estimates suggest that 2023 could witness up to 60,000 job losses in the sector, marking one of the harshest years for employment since the 2008 financial crisis.

A cautious investment climate and higher interest rates impacted CMC.

If similar actions are taken across the financial sector, it could affect tens of thousands of jobs.

CMC said: "In its interim results announcement on 16 November 2023, CMC indicated that the business was reaching the peak of its investment cycle and a cost review was planned for H2 focused on driving efficiency through its global operations.

“The review has been successfully completed and as a result the Group will be reducing global headcount by approximately 200 positions, representing circa 17 percent of existing headcount."

Banks are cutting thousands of jobs

Recently Deutsche Bank confirmed a 3,500 job cut following a 30 percent profit decline in the fourth quarter.

The situation has caught the attention of UK government officials, including Chancellor Jeremy Hunt.

He has expressed concern over the potential impact on banks' ability to provide business loans, crucial for averting a recession.

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CMC said: "Cost reductions have been primarily achieved by merging support functions across multiple business lines, streamlining reporting lines and automating processes.

“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 firm remains dedicated to improving efficiency, controlling expenses, and continuing investment in growth and technological advancements.

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