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 is starting 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. The CMA 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, with CMA chairman Marcus Bockkernck sacked this week after complaints about the regulator were raised by ministers.

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

Bokkernk’s exit has led antitrust lawyers and lobbyists to question whether the CMA will now take a more lenient approach to Big Tech. Buckkernk has been replaced on an interim basis by former Amazon UK head 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 reassurances of confidence in the agency, one of the people said.

While plans for a staff exit were already in train before Bockkernk’s firing, some staff are concerned that further staff cuts could 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 set of powers in the new digital markets system that came into effect this month, and led to the creation of a digital markets unit within 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 this month became the first companies to be investigated to determine whether the rating should be granted.

The CMA said: “This historic budget issue has been resolved swiftly and effectively. 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.