German exchange group Deutsche Börse has confirmed that it plans to shed 3% of its workforce as part of ongoing programme to increase efficiency and optimise operational processes across the exchange group.
The exchange’s cost-cutting drive will affect 370 jobs in total, but only 100 positions – 3% of the total workforce – will be cut. Around two-thirds of the 370 jobs will be relocated to Prague from Deutsche Börse’s Luxembourg and Frankfurt offices.
The reshuffle is expected to save the exchange group €100 million per year in cost savings, which are expected to fully materialise by 2013.
Deutsche Börse has also said it aims to halve the number of external service providers it uses and extend the use of its trading technology to other markets as part of the programme.
The implementation costs to achieve these savings are expected to be below €200 million.
According to Deutsche Börse, the objective of the initiative is to improve flexibility and available resources across the group, reduce time to market, increase the exchange’s efficiency and identify and realise new growth opportunities.
The budget for new growth opportunities for the group has been increased to €100 million in 2010, a 50% rise on 2009’s figure. The exchange will also look to strengthen its presence in Asia, particularly Singapore.