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The UK's Competition and Markets Authority plans to cut staff by nearly 10 per cent after a “budget blunder”, as the agency reels from the government's ouster of its boss.
Chief Executive Sarah Cardell told staff at a town hall meeting in December that the CMA had initiated a voluntary exit plan to cut staff by about 100 due to overspending, according to people familiar with the matter.
Cardell referred to the overspending as a “budget mistake,” people said. the Capital Market Authority It has a total staff of around 1,200 and its Treasury budget for the year is £139 million.
At another town hall meeting on Monday, Cardell said some areas of the agency, such as mergers and the new digital markets unit, would be protected from cuts, the people said.
One person added that the authority seeks to avoid forced job reductions by starting with voluntary departures.
These cuts come at a time when the regulatory body finds itself in the crosshairs of the Labor government CMA president Markus Bukerinic was sacked this week By ministers after complaints from businessmen about the regulator.
Ministers wanted to send a signal to the CMA and other independent regulators that the government wants to prioritize growth. According to officials.
Pokerinic's exit prompted antitrust lawyers and lobbyists to wonder whether the CMA would do so now Take a softer approach towards big tech companies. Bokkerink has meanwhile been replaced by former Amazon UK boss Doug Gore.
At a staff meeting on Thursday, Kardel sought to reassure staff that they did not need to worry about Bokerinac's departure and that the government had provided assurances of its confidence in the agency, one of the people said.
While an exit plan was in the works before Bukirinck's ouster, some employees are concerned that in light of the government's frustration with the agency, there could be further staff cuts.
The number of employees at the antitrust watchdog has risen dramatically over the past eight years from about 600 employees in 2017 to 1,185 as of October 2024, according to most reports. Final revelation.
CMA has expanded its presence from London to a number of centers across the UK. Part of the growth is due to its range of powers under the new digital markets regime, which came into force this month and led to the creation of the agency's digital markets unit to enforce it.
Under the new system, the Capital Markets Authority will classify a number of major technology companies with a significant presence in certain digital markets as having a “strategic market status” and force them to adhere to certain codes of conduct.
Google and Apple became the first companies This month to face investigations to determine whether they should be extradited status.
The Capital Markets Authority said: “This is a historic budget issue that was addressed quickly and appropriately.” The CMA is fully focused on its priorities for the coming year including working with the government and the new interim president to help deliver growth.
The Treasury said it was “aware of this landmark issue and worked with the CMA last year to resolve it”, adding: “We are now moving forward with the second part of spending review discussions, as are all government departments.”
