Continuing the measures taken by the large brokers worldwide Saxo today has let go of over 250 employees, most of them in the Copenhagen headquarters. This is similar to the measures taken by GFT. 2012 became one of the toughest years in terms of market volatility and client activity and this trend is expected to continue in the foreseeable future. Brokers hence have no choice but to downsize since they can no longer finance the large operations with little income. Saxo’s net profit was down 88% in first half of 2012 and while it was still profitable, assets and client accounts grew – the profitability can no longer provide for as many employees as in the past. In H1 2012 Saxo reported that it had 1,577 employees so it downsized about 10% of its workforce.
Only last week we wrote about OANDA consolidating global operations and wrapping up Dubai office. We will surely, and sadly, see more and more of such measures taken by the larger brokers since they have no other choice.