UK news website Sky News is reporting that leading UK online broker IG Group (LON:IGG) is planning to cut hundreds of jobs from its workforce of about 2,300 employees, as part of a major reorganisation of the company.

We reported back in July that IG was carrying out plans to establish a new Group holding company incorporated in Jersey, as part of streamlining its operating model, with around two-thirds of IG Group revenue now generated outside the UK.

In a memo to IG employees reportedly seen by Sky News, IG’s CEO Consumer Michael Healy said that staff in countries including the UK would be informed in a first wave of discussions, some of which already took place last month.

The memo by Michael Healy included:

“In all our other locations (i.e. Poland, France, Spain, Sweden, Switzerland, Germany, Italy, Bermuda, UAE, India), we will begin discussions with people impacted as soon as we can, most likely during September.

“Everyone whose role is affected in whatever way, for whatever reason, will be treated fairly, lawfully, with respect, and with dignity.

“This is not just another line in yet another email; it is how this process will be run everywhere.”

At the end of July IG became a major player in Prediction Markets, and grew its US footprint, by agreeing to acquire Underdog for $1.3 billion. Since the deal was announced IG Group shares have fallen by about 21%, from GBP 17.06 to 13.54 currently.