Lord Cruddas' trading firm will cut 200 jobs amid economic downturn in the City

Lord Cruddas' firm is also targeting cost savings by consolidating support roles, simplifying chains of command and automation. Photo credit: Jamie Lorriman

Lord Cruddas' CMC Markets has joined the list of companies cutting jobs in response to the city's economic downturn.

The foreign exchange and spread betting company will cut 200 positions, equivalent to about 17% of its workforce, in a bid to cut costs.

It comes after CMC announced plans in November to improve the efficiency of its global operations after as operating costs jumped 15% to £121.9m.

Cost savings were achieved by merging support functions across multiple divisions, simplifying chains of command and automating processes, CMC said in a trading update in Monday.

It is the latest UK company to announce large-scale layoffs due to interest rate hikes. interest rates and inflation pressures are weighing on demand.

Lloyds Bank is preparing to cut 1,600 jobs across its branch network as the lender increasingly moves to online banking.

Barclays and Metro also reduced their positions due to increased automation of banking services.

Britain's financial services sector isn't the only one cutting jobs, with Germany's Deutsche Bank also announcing 3,500 redundancies last week.

CMC is among online investment firms that have seen a slowdown in activity after trading The pandemic-fuelled boom has fizzled out.

The London-listed company said it forecast savings of £21 million in 2025, with revenue expected this year. will fall between £290 million and £310 million.

CMC said: “The group will continue to seek opportunities to improve efficiency and control costs, while remaining committed to investing in growth opportunities and ensuring its technology remains market leading.

The business was founded in 1989 by Lord Cruddas, a Tory peer who was once described as the richest man in town.

A prominent Brexiteer and former banker, ennobled by Boris Johnson. owns 59% of the business in 2020.

CMC's share price rose more than 16% after Monday's announcement.