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Britain’s Competition and Markets Authority plans to cut its workforce by almost 10 per cent following a “budget error”, as the agency reels from the ouster of its chairman by the government.
Executive Director Sarah Cardell told staff at a public meeting in December that the CMA was launching a voluntary separation program aimed at reducing the workforce by about 100 people due to excessive spending, according to people familiar with the matter. .
Cardell called the overspending a “budget mistake,” the sources said. THE CMA has a total workforce of almost 1,200 people and its Treasury budget for this year is £139 million.
At another public meeting Monday, Cardell said some areas of the agency, such as mergers and the new digital markets unit, would be protected from cuts, the sources said.
The watchdog is seeking to avoid forced job cuts by starting with voluntary departures, one of the sources added.
These cuts come as the regulator finds itself in the crosshairs of the Labor government, with CMA President Marcus Bokkerink ousted this week by ministers after complaints from companies against the regulator.
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 departure has led antitrust lawyers and lobbyists to question whether the CMA will now take a softer approach towards Big Tech. Bokkerink was replaced on an interim basis by former Amazon UK director Doug Gurr.
At a staff meeting Thursday, Cardell sought to reassure employees that they need not worry about Bokkerink’s departure and that the government had given assurances of its confidence in the agency , said one person.
Although the staff departure plan was underway before Bokkerink’s ouster, some employees fear that, given the government’s frustration with the agency, further staff reductions could take place.
The antitrust regulator’s staff has grown significantly over the past eight years, from around 600 people in 2017 to 1,185 by October 2024, according to the largest numbers. recent disclosure.
The CMA has expanded its presence from London to a number of centers across the UK. Part of this growth is due to the range of powers given to it by the new digital markets regime, which came into force this month and which led to the creation of the digital markets unit within the agency to enforce it.
Under the new regime, the CMA will designate a number of large technology companies with a significant presence in certain digital markets as having “strategic market status” and require them to follow certain rules of conduct.
Google and Apple became the first companies this month they will be subject to an investigation to determine whether they should be granted this status.
The CMA said: “This is a historic budget issue which was resolved quickly and appropriately. The CMA is fully focused on its priorities for the year ahead, including working with the government and the new Acting President to help drive growth.
Treasury did not immediately respond to a request for comment.