Deutsche Börse plans 350 job cuts for structural costs reduction

Deutsche Börse outlines targeted cost reductions and €270 million technology investment plans by 2020.

Deutsche Börse has said it will cut 350 jobs as it looks to reduce its structural costs by around €100 million by the end of 2020.

The exchange operator laid out the plans as part of its new ‘Roadmap 2020’ strategy, which included targeted cost reductions to create scope for further investments in technologies over the next few years.

Of the 350 jobs to be cut, 50 will be manager-level, and one-off costs for the strategic programme have been estimated to be around €200 million, most which will be incurred this year.

“Deutsche Börse is preparing itself for the future and for further growth in the best manner possible,” Theodore Weimer, CEO of Deutsche Börse, commented. “We will be focusing even more consistently on the scalability of our business model and on enhancing our operational processes.”

“By the end of 2020, we want Deutsche Börse to be a more efficient company – and a bigger one, with more employees than today.”

Deutsche Börse also said it plans to invest €270 million in new technology as part of the new strategy. Technologies targeted by the exchange include big data, blockchain analyses, cloud computing, robotics and artificial intelligence.

The strategy further includes plans to strengthen the exchange’s business through more acquisitions in five areas: fixed-income, energy products, currencies, investment fund services, and also data and indices.   

One day prior to the announcement, Deutsche Börse confirmed it agreed to acquire FX trading venue GTX ECN for $100 million. The venue will be integrated with the FX trading platform 360T to create one of the largest over-the-counter (OTC) FX marketplaces.

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