Britain’s competition regulator is to cut staff as the agency faces the wrath of the government

The UK’s Competition and Markets Authority plans to cut staff by almost 10 per cent after a “budgeting error”, while the agency is reeling from the government’s sacking of its chairman.

Executive Director Sarah Cardell told staff at a town hall meeting in December that the CMA was beginning a voluntary layoff program to reduce staff by about 100 due to overspending, according to people familiar with the matter.

Cardell called the overspending a “budget miscalculation,” the people said. The CMA has a total workforce of nearly 1,200, and the budget for this year from the Treasury is £139 million.

At another town hall meeting Monday, Cardell said certain areas of the agency, such as mergers and a new digital markets unit, would be protected from cuts, the people said.

The supervisor sought to avoid forced job cuts by starting with voluntary departures, one of the people added.

The cuts come as the regulator finds itself in the crosshairs of the Labor government, with CMA president Marcus Bokkerink was fired this week ministers after complaints from entrepreneurs to the regulator.

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

Bokkerink’s exit has led antitrust lawyers and lobbyists to question whether the CMA will now take a softer approach towards Big Tech. Bokkerink has since been replaced by former Amazon UK boss Doug Gurr.

At a staff meeting Thursday, Cardell tried to reassure employees that they should not be concerned about Bokkerink’s departure and that the government had given assurances of its confidence in the agency, one of the people said.

While the layoff plan was underway before Bokkerink’s ouster, some employees are concerned that in light of the government’s frustration with the agency, there could be further downsizing.

The number of staff at the antitrust regulator has grown significantly over the past eight years from around 600 employees in 2017 to 1,185 in October 2024, according to most recent disclosure.

CMA has expanded its presence from London to a number of centers across the UK. Part of the growth is down to a set of powers under the new digital markets regime, which came into force this month, and led to the creation of a digital markets unit in the agency that enforces it.

Under the new regime, the CMA will designate a number of large technology companies with a large presence in certain digital markets as having “strategic market status” and force them to adhere to certain rules of conduct.

Google and Apple became the first companies this month to face inquiries to determine whether they should be granted status.

The CMA said: “This is a historic budget issue which has been dealt with swiftly and appropriately. The CMA is fully focused on its priorities for the coming year, including working with the government and the new interim chair to help deliver growth.”

The Finance Ministry did not immediately respond to a request for comment.