CMC Markets Plc (LON:CMCX), a leading global provider of online retail and institutional platform technology, today issued an update on its cost reduction and efficiency plans.

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 now been completed and as a result the Group will be reducing global headcount by approximately 200 positions, representing circa 17% of existing headcount.

CMC is expected to incur a one off, non-recurring cost of circa £2.5 million in FY24 with estimated annualised savings of £21 million to be realised in FY25, representing an 18% reduction against consensus staff costs.

The Group says it continues to focus on driving efficiencies and making structural savings across its global operations.

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.

Trading remains in line with expectations and the Group is on track to deliver net operating income of between £290-£310 million for FY24.