The UK Competition and Markets Authority plans to cut staff numbers by close to 10 percent following a “budget mistake”, as the agency faces the sacking of its chairman by the government.
Chief executive Sarah Cardell told employees at a town hall meeting in December that CMA is beginning a voluntary layoff process to reduce the number of employees by about 100 because of higher spending, according to people familiar with the matter.
Cardell referred to the overspend as a “budget mistake”, the people said. I CMA it has a total headcount of around 1,200 and a budget from the Treasury this year of £139mn.
In another town hall meeting Monday, Cardell said some areas of the agency, such as integration and a new digital marketing unit, would be protected from cuts, the people said.
The guard wanted to avoid forced job cuts by starting with voluntary departures, one of the people added.
The cuts come as the director finds himself in the throes of a Labor government, with CMA chairman Marcus Bokkerink was sacked this week by the trustees after complaints from the industry about the regulator.
The ministers wanted to send a signal to the CMA and other independent regulators that the government wanted to prioritize growth, according to officials.
Bokkerink's exit has led antitrust lawyers and activists to question what the CMA will do next. take the soft road to Big Tech. Bokkerink has been replaced on an interim basis by Amazon UK boss Doug Gurr.
At a staff meeting Thursday, Cardell tried to reassure employees that they didn't have to worry about Bokkerink's departure and that the government had given assurances of its confidence in the agency, one of the people said.
While the layoff process was under way before Bokkerink's dismissal, some workers are concerned that the government's disillusionment with the agency could lead to more layoffs.
The number of employees at the antitrust regulator has grown significantly over the past eight years from about 600 employees in 2017 to 1,185 by October 2024, according to several sources. recent announcement.
CMA has expanded its presence from London to a number of hubs across the UK. Part of the growth is down to its power under the new digital markets regulation, which came into force this month, and led to the creation of a digital markets unit in the agency to enforce it.
Under the new regime, the CMA will designate a number of Big Tech companies with a large presence in certain digital markets as “professional market conditions” and force them to comply with certain rules of conduct.
Google and Apple became the first companies this month they face an investigation to ensure that they deserve the award.
The CMA said: “This is a historic budget issue that has been resolved quickly and effectively. The CMA is fully focused on priorities for the coming year including working with the government and a new interim chairman to help deliver growth. “
Treasurer did not immediately respond to the request for a breather.