Swiss Exchange to axe 70 jobs

Swiss Exchange to axe 70 jobs

The Swiss Stock Exchange is cutting 50-70 full time jobs under restructuring plans aimed at generating savings of SFr20 milllion in operating costs, equivalent to 7.5% of total annual outgoings.

The exchange says a rise in operating costs has outpaced the growth of revenues in its core business.

SWX says affected employees will be informed in October.

With the planned restructuring measures, SWX says it will achieve a size that is "appropriate for implementing its corporate strategy", as it prepares for a cyclical decline in the securities business.

Jürg Spillmann, head of the group executive committee, says: "The group executive board has decided to take these steps during a phase of stronger economic activity and improved labour market conditions in the financial services industry. If the move were to be postponed, there would be an increased threat that the measures could coincide with a cyclical downturn and at worst no longer take hold in timely manner."

Last year the Swiss exchange rejected a takeover bid from Deutsche Börse, but rumours of a possible merger between the two exchanges have re-surfaced following Deutsche Börse's announcement that it plans to nominate SWX chairman Reto Francioni as its new chief executive.

The two exchanges already jointly own electronic derivatives exchange Eurex.

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