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Saxo Bank, a Danish bank specialized in providing online trading services, is laying off 50 employees, or some 3% of its global workforce, finance media LeapRate reported on Thursday. With the move, the company aims to allow future growth by cutting fixed costs and increasing profitability.
“To ensure the health and profitability of the Group and to be able to continue to invest in the foundation for growth and further develop our product offering, we have decided to adjust the fixed cost base by reducing the workforce by 50 employees globally,” Saxo Bank CFO Steen Blaafalk said as cited by LeapRate. “The decision should be seen in the light of our ongoing efforts to streamline and digitise a range of processes in the bank. It is sad to have to say goodbye to good employees who have all made large contributions to the bank but is has been necessary to adjust the cost base to the current levels of income and activity in the Group,” he added.
According to the media, most of the layoffs will be at its head office in Denmark and a small number will be at the company’s UK branches. However, a Saxo Bank representative contacted SMN Weekly with the remark that “the cut affects the entire global organization and is not confined to Denmark and UK”.
“At Saxo Capital Markets UK Ltd. a small number roles are at risk of redundancy. We will be working with the individuals through a consultation period and as with normal practice, we will be looking for suitable alternative roles within the organization,” the representative noted, adding that terminations, if any, can only be confirmed following the consultation period.
The forex bank has already issued pink slips to the selected employees. According to the media, no staff from at the senior management level will be cut off. However, lay offs will take place across all business areas at the company, including sales, marketing and some corporate functions.
The staff reduction was additionally supported by the fact that Saxo Bank has has been successful at increasing automation in the onboarding of new clients, with more ‘self-converting’ clients requiring less personnel.
Earlier this week, Saxo Bank published trading metrics data, which indicated a 17.4% jump in trading volume for 2016 and a new record-high in client deposits. According to the latest financial metrics available, in H1 2016 the company turned to a significant net profit on the back of a doubled operating income.
Saxo Bank, set up in Copenhagen in 1992, offers about 30,000 trading instruments, including forex, binary options, contracts for difference (CFDs), stocks, bonds, and futures. The company holds a banking license from Denmark’s Financial Supervisory Authority (FSA). The group operates through its subsidiary companies across Europe, Asia and the Middle East, Australia, South America, and South Africa.