UK competition regulator to cut staff after ‘budget blunder’

The UK’s Competition and Markets Authority plans to cut its workforce by up to 10 per cent after a “budget blunder”, as the agency fends off being sacked by the government.

Chief executive Sarah Cardell told employees at a town hall meeting in December that CMA was beginning a voluntary exit plan to reduce the number of employees by about 100 because of excessive spending, according to people familiar with the matter.

Cardell referred to the overspend as a “budget mistake”, the people said. The CMA it has a total workforce of around 1,200 and its budget from the Treasury this year is £139mn.

At a town hall meeting Monday, Cardell said other areas of the agency, such as the merger with the new digital marketing unit, would be protected from the cuts, the people said.

The watchdog wanted to avoid forced layoffs by going voluntary first, one of the people added.

The cuts come as the manager finds himself in a Labor government, with CMA chairman Marcus Bokkerink was ousted this week by ministers after business complaints about the manager.

The ministers wanted to send a message to the CMA and other independent authorities that the government wants to put growth first, according to authorities.

Bokkerink’s exit has led antitrust lawyers and businessmen to question whether the CMA will do so. take a soft approach to Big Tech. Bokkerink has been replaced on an interim basis by former head of Amazon UK Doug Gurr.

At a staff meeting Thursday, Cardell sought to reassure employees that they needn’t worry about Bokkerink’s departure and that the government has given assurances of its confidence in the agency, one person said.

Although the plan to leave the workforce is still on the train before Bokkerink’s dismissal, some workers are worried that because of the government’s frustration with the sector there may be another reduction of workers.

Staff numbers at the antitrust regulator have grown significantly over the past eight years from about 600 staff in 2017 to 1,185 by October 2024, according to multiple sources. recent announcement.

CMA has expanded its presence from London to several locations across the UK. Part of the growth is based on its strength under the new digital marketing system, which came into effect this month, and led to the creation of a digital marketing unit at 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 that have a “strategic market position” and force them to comply with the rules. certain morals.

Google and Apple were the first companies this month to face an investigation to find out if they should be given positions.

The CMA said: “This is an old financial matter which has been dealt with quickly and correctly. 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.

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