Markets.com, an online brokerage for forex and CFDs trading, has let dozens of its employees go, Finance Magnates has confirmed with Playtech. The business is part of the financial trading portfolio of the London listed gaming giant. The company acquired TradeFX, which owns the Markets.com brand, back in April 2015.
The news doesn't come as a surprise amid the ongoing transformation in the business model of Playtech’s financial trading subsidiary. Back in December 2015, Finance Magnates already reported that the operational structure of the company’s financial business is getting a revamp alongside client on-boarding procedures.
Automation and Regulation Prompt Changes
With CySEC publication from yesterday which warrants limitations of direct sales to clients, and enforces new requirements on the customer support aspect of the business, the decision made by Playtech last year is in line with industry trends.
The regulatory backdrop has become increasingly developed with tighter restrictions and controls
“Markets Group is a leading CFDs broker and Trading Platform provider that, since the end of 2015, has been undergoing a period of strategic transformation in line with new regulatory and technology changes. The regulatory backdrop under which we operate, for example, has become increasingly developed with tighter restrictions and controls imposed on the brokerage industry,” a spokesperson for Playtech elaborated.
Playtech’s financial trading subsidiary contributed about €100 million to Playtech’s revenues throughout 2015. In order to optimize costs and adjust to the regulatory framework, the industry is rapidly evolving and a number of on-boarding and retention functions which were previously executed by staff are now rapidly transitioning towards automation.
“Established businesses such as our own must react and adapt to and foresee emerging market trends. In order to continue to grow and further enhance the business in the face of changing regulation, we have invested in the latest automated customer management and user experience systems that are, and will, continue to drive the business forward,” Playtech’s spokesperson elaborated on the matter.
This process will ensure the business is future proofed with improved automated operational functionality
The staff reorganization which the company has undertaken resulted in dozens of employees getting laid off. Playtech shared with Finance Magnates that the firm is currently undergoing a consultation process with staff members and is working closely with them to ensure they find alternative employment.
“This process will not affect Markets Group and, once concluded, will ensure the business is future proofed with improved automated operational functionality and customer service, we are better placed to capture new and profitable business, while also ensuring the very highest standards of compliance are at the forefront of our strategy,” the spokesperson concluded.
