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Details emerge on CMC layoffs

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A bit more light has been shed on our report last week that CMC Markets had embarked on a global redundancy programme.

What’s up at CMC?
Rumours persist that all is not well at CMC Markets.
Published: 01 Aug 2008


Word reaches the FiX that around 90 employees have been let go, which a spokesman says took place following a review of the company’s resources as part of its normal business planning. He adds that the company has shed less than 10% of its workforce.

At the same time, several of the company’s senior management have also left. Industry sources say that in some cases, the individuals have decided that it was time to walk off into the sunset and count their money, while in others the decision was not theirs. Among those who have left are Roger Hynes, its managing director western region, John Ersser, who had been chief operating officer, Geoff Langham, director of trading and, Jolyon Baker and Mark Sparrow.

At first glance, the scaling back of its workforce looks either odd or very brave at a time when CMC is apparently doing so well. Despite my natural cynicism, I’m inclined to believe it’s the latter. Sources within the sector say that CMC was not alone in rushing out and hiring like crazy over the past two years. While the trading environment remains buoyant, conditions have got tougher. Bank spreads have widened and the lack of a clear trend has possibly introduced a degree of volatility in some market makers’ P&L.

I hear talk that one of CMC’s rivals is poised to announce a similar redundancy programme. Perhaps the only thing that is clear is that remaining tight-lipped about what has gone on encourages speculation both within the industry and the press.