CMC Markets to cut 17% of workforce, shares jump

CMC Markets (LSE: CMCX) shares jumped 14.7% on Monday after it unveiled plans to cut around 200 jobs, some 17% of its workforce, to drive £21 million in annual cost savings.

The online trading platform said it expects to book a £2.5 million restructuring charge in the current financial year ending March 31st.

The job cuts are part of a cost review announced in November that CMC said remains on track to meet full-year net operating income guidance of £290-310 million, up from £288.4 million last year. First-half results showed a swing to £2.0 million pretax loss from £36.6 million profit a year earlier as income fell 20%.

Read More News:
Revolution Beauty shares rise on news of legal settlement

Despite the heavy job losses, CMC said it remains committed to investing for growth while streamlining operations. The company will provide a trading update on April 9th.

CMC shares are down 37% over the past 12 months.