IronFX Lays Off 10% of Workforce, In Discussions with External Investors
Responding to rumors of a larger round of layoffs, a representative at IronFX confirmed to Finance Magnates that 50 people
During the iFX Expo Cyprus last week, one of the brokers being discussed by attendees was IronFX. Rumors being circulated were both positive and negative. The negative ones were about a large round of layoffs taking place, a freeze on account withdrawals, and the firm potentially closing or selling portions of its business. There were also upbeat statements, as several partners (including a Chinese partner) noted that they continue to have normal relationships with IronFX.
Overall though, sentiment was that the broker’s future is a bit murky as we soon head into the second half of 2015. In regards to IronFX themselves, while the firm wasn’t an exhibitor or sponsor, employees did attend and had the ‘business as usual’ appearance at the show.
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Reorganization
Among the rumors, what has been confirmed is that IronFX did in fact initiate a large round of layoffs. According to a company representative, 50 non-front office personnel were let go, including support people, representing less than 10% of their global staff, which the firm claims to remain above 500. While a large number, the stated amount was below the 100 or so employee figure which had made the rounds at the iFX Expo.
(Worth noting that the CEO stated to Finance Magnates that they have 800 employees as of late February, which may include personnel from partners or indicate the recent wave of layoffs follows larger ones that took place in March and April.)
Explaining the decision to Finance Magnates, the company representative said that the layoffs were the result of restructuring taking place at IronFX as the broker adjusts to the challenging market conditions of 2015. The representative pointed out that in 2015 “the industry has been going through the biggest turmoil/changes/consolidation since the retail online trading industry started in the late 90s, including the SNB crisis as well as recent challenges of publicly listed global FX brokers.”
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The prevailing market conditions the company has decided to execute a planned restructuring of its global operations
As a result, the company representative stated that due to ”the prevailing market conditions the company has decided to execute a planned restructuring of its global operations”, adding that “This restructuring is primarily aimed at all functions and excess capacity created as a result of its own planned IPO, but affected predominately non-Front Office departments and functions.”
The Future
In regards to the future, IronFX has been reported to have had talks with external investors, most notably Tedi Sagi, whose firm, Playtech had recently purchased Markets.com. On the potential of a sale, the IronFX representative confirmed that “we have investor approaches underlying the intrinsic value of the business” as well as adding that they may be acquiring themselves, stating “we are in discussion with various parties to maximize consolidation opportunities in the market following the demise of large competitors”.
One cloud that continues to hang over the broker and could prevent a sale is an ongoing case against IronFX that was filed in Cypriot courts. Filed by customers and partners, the case was brought after the IronFX froze account withdrawals, claiming bonus fraud took place.
Primarily affecting Chinese partners and account holders, the withdrawal freeze has customers to storm IronFX offices in China. While activity outside of IronFX’s global headquarters in Limassol, Cyprus, looked normal to Finance Magnates last week, forex industry professionals working near the office have reported that an increase of security has been seen at the building.
In addition, some have questioned the earnings power of IronFX. Focusing on rapidly expanding its business, the broker is believed to have sacrificed margins for growth, which led them to possibly have surpassed $100 billion in monthly volumes during 2014. However, the model also makes them vulnerable to one or two bad months having the ability to affect their overall annual performance. The alleged bonus fraud that took place in the later part of 2014 and the millions of dollars being claimed in courts to be owed, would have been such a case that could have knocked all of IronFX’s previous success of the year.
IronFX continues to attract interest and sell clicks… Good to see a more balanced approach from FM though you guys seem to like to rehash old articles none of which has been proven right.
Glad to see that you recognise the noise in China has settled down, and Chinese IBs referring to “business as usual”l.
With regards to capital markets action – watch this space…
And FM is definitely understating the volume. What has happened on Friday was a well executed cost-cutting exercise. I hear that margins are 30% and increasing.
IronFX continues to attract interest and sell clicks… Good to see a more balanced approach from FM though you guys seem to like to rehash old articles none of which has been proven right.
Glad to see that you recognise the noise in China has settled down, and Chinese IBs referring to “business as usual”l.
With regards to capital markets action – watch this space…
And FM is definitely understating the volume. What has happened on Friday was a well executed cost-cutting exercise. I hear that margins are 30% and increasing.
Didn’t see anyone getting bothered when employees were hired by the hundreds…
Took them a while to realize that they should abandon the charitable organization/only hire attitude and concentrate on producing personnel for the sake of protecting the organization as a whole.
BTW, even after the cuts, i’m only aware of a couple brokers employing more personnel .
Didn’t see anyone getting bothered when employees were hired by the hundreds…
Took them a while to realize that they should abandon the charitable organization/only hire attitude and concentrate on producing personnel for the sake of protecting the organization as a whole.
BTW, even after the cuts, i’m only aware of a couple brokers employing more personnel .
Since when cutting non-productive workforce is a negative? FM gets confused again?
Since when cutting non-productive workforce is a negative? FM gets confused again?
Very strange that Donny, Michael and J all have western names but the comments look like english is a second language. And all comments written in the same style, prefer if whoever wrote the three comments just used their real name rather than using three alias.
Very strange that Donny, Michael and J all have western names but the comments look like english is a second language. And all comments written in the same style, prefer if whoever wrote the three comments just used their real name rather than using three alias.
They are going for a ”controlled insolvency”. Period.
The FX market had enough of bucket shops.
They are going for a ”controlled insolvency”. Period.
The FX market had enough of bucket shops.
They are gone. They tried to cheat regulators, clients, staff.
A bubble which busted.
Going, going, gone.
They are gone. They tried to cheat regulators, clients, staff.
A bubble which busted.
Going, going, gone.
Who are the ”external investors”?
Which ”investor” will put money in a scam firm with around $100 million pending withdrawals, tons of court cases and such a bad name?
They haven’t even paid their xmas party yet!
Correct. Gone.
Who are the ”external investors”?
Which ”investor” will put money in a scam firm with around $100 million pending withdrawals, tons of court cases and such a bad name?
They haven’t even paid their xmas party yet!
Correct. Gone.
According to your wishful thinking IronFX should have gone on a variety of “reason” for most of the past 2 years.
Hasn’t “gone” and also no regulatory fines (FCA, ASIC, CySEC) or even comment.
In the meantime, a lot of “blue chip” darlings (FXCM, Plus500) are gone, gone, gone.
Let’s get real and stop panicking every time IronFX is in the news.
Ironfx is technically bankrupt and their management don’t have the balls to admit it.
According to your wishful thinking IronFX should have gone on a variety of “reason” for most of the past 2 years.
Hasn’t “gone” and also no regulatory fines (FCA, ASIC, CySEC) or even comment.
In the meantime, a lot of “blue chip” darlings (FXCM, Plus500) are gone, gone, gone.
Let’s get real and stop panicking every time IronFX is in the news.
Ironfx is technically bankrupt and their management don’t have the balls to admit it.
Lets get serious on this. IronFX is over! Everyone knows that.
Time for management to admit that publicly so that client can start compensation scheme process, withadrawls will never be processed. Its a complete ponzi scheme.
Money laudring in China with Markos Kashiouris fake IB, +300 court cases (not all from china), fines in Latin America. Anyone still have doubts?
Lets get serious on this. IronFX is over! Everyone knows that.
Time for management to admit that publicly so that client can start compensation scheme process, withadrawls will never be processed. Its a complete ponzi scheme.
Money laudring in China with Markos Kashiouris fake IB, +300 court cases (not all from china), fines in Latin America. Anyone still have doubts?
IronFX is breaking the headlines yet again…
http://oi59.tinypic.com/14nh98n.jpg
IronFX is breaking the headlines yet again…
http://oi59.tinypic.com/14nh98n.jpg
http://www.fxsforexsrbijaforum.com/t1658-selecting-the-right-broker
http://www.fxsforexsrbijaforum.com/t1658-selecting-the-right-broker