The UK competition regulator is to cut staff after a budget blunder

The UK’s Competition and Markets Authority plans to cut staff by almost 10 per cent following a “budget blunder” as the agency’s chair was sacked by the government.

CEO Sarah Cardell told employees at a town hall meeting in December that CMA was beginning a voluntary layoff program to reduce the number of employees by about 100, people familiar with the matter said.

Cardel referred to the overspending as a “budget error,” the people said. of CMA It has a total headcount of around 1,200 and this year’s budget from the Treasury is £139mn.

At another town hall meeting on Monday, Cardell told the public that certain areas of the agency, such as integration and the new digital marketing division, would be protected from cuts.

The regulator was seeking to avoid forced layoffs from a voluntary start, one of the people added.

The cuts come as the regulator finds itself in the crosshairs of a Labor government. CMA chairman Markus Bokkerink was fired this week By ministers after business complaints about the controller.

Ministers wanted to send a signal to the CMA and other independent regulators that the government wants to prioritize development According to the officials.

Bockkernck’s exit has led antitrust lawyers and lobbyists to question whether the CMA will continue now. Take a simple approach to Big Tech. Bokkernk has been replaced on an interim basis by former head of Amazon UK, Doug Gurr.

At a staff meeting on Thursday, Cardel sought to reassure staff that they needn’t worry about Bockrink’s departure and that the government had reassurance of confidence in the agency, one of the people said.

While layoff plans were in train before Bockkernke’s firing, some employees fear further layoffs may be in the offing given the government’s frustration with the agency.

Staff numbers at the antitrust regulator have grown significantly over the past eight years, from about 600 staff in 2017 to 1,185 in October 2024. Latest statement.

CMA expanded from London to several centers in the United Kingdom. Part of the growth is in the collection of powers in the new digital markets system that came into effect this month, and led to the creation of a digital markets unit in the agency to implement it.

Under the new regime, the CMA classifies a number of Big Tech companies with significant positions in certain digital markets as having a “strategic market position” and requires them to comply with certain rules of conduct.

Google and Apple became the first companies This month to face investigations to determine whether the status should be given.

The CMA said: “This is a historic budget issue that has been dealt with quickly and appropriately. The CMA is fully focused on supporting progress by working with the Government and the new Interim Chair on the priorities for the coming year.

The Treasury did not immediately respond to a request for comment.