20 October 2017
Find out more

Deutsche Börse plans lay-offs and outsourcing as income dips

17 February 2010  |  7848 views  |  0 Frankfurt stock exchange

German exchange operator Deutsche Börse has outlined plans to save EUR50 million through an unspecified number of job cuts and outsourcing initiatives after reporting a EUR33 million net loss for the fourth quarter.

For the full year, the Frankfurt-based exchange booked a net profit of €496.1 million, down 52% from the record €1.03 billion it earned in 2008. A decline in trading on the cash and derivatives markets and a previously-disclosed €415.6 million impairment charge against its investment in US options exchange ISE hampered performance.

The company's executive board has moved to pare costs still further in 2010 with plans to save EUR50 million via management lay offs and an extension of its outsourcing programme. The Exchange says it is exploring the possibility of relocating further jobs after positive experiences gained from an earlier initiative to move 250 positions to a new centre in Prague.

Reports in German business daily Handelsblatt in January suggested the Bourse was preparing to cut up to 10% of its 3300-strong workforce and outsource certain activities of subsidiary depository Clearstream.

At the same time, Deutsche Börse says it will increase expenses for "growth initiatives" in 2010 by more than 50% over the previous year, to around €100 million. This will include spending on technology, risk management and product innovation.

Reto Francioni, CEO of Deutsche Börse says: "By taking these steps, we are creating additional flexibility in order to seize market opportunities resulting from the financial crisis. This will serve our clients, our shareholders and the effectiveness and integrity of the markets we organise."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Deutsche Börse mulling staff cuts, outsourcing - Handelsblatt

Deutsche Börse mulling staff cuts, outsourcing - Handelsblatt

28 January 2010  |  5727 views  |  0 comments
Deutsche Börse to take EUR200 write-down against under-performing ISE

Deutsche Börse to take EUR200 write-down against under-performing ISE

20 January 2010  |  5036 views  |  0 comments
Deutsche Börse forced to suspend bond e-trading

Deutsche Börse forced to suspend bond e-trading

07 January 2010  |  11322 views  |  0 comments
Deutsche Börse taps Corvil for latency measurement

Deutsche Börse taps Corvil for latency measurement

21 December 2009  |  10671 views  |  0 comments
Deutsche Börse to buy 75% stake in Tradegate Exchange

Deutsche Börse to buy 75% stake in Tradegate Exchange

30 November 2009  |  6651 views  |  0 comments
Deutsche Börse acquires machine-readable data specialist Need to Know News

Deutsche Börse acquires machine-readable data specialist Need to Know News

20 November 2009  |  9316 views  |  0 comments
Dow Jones to sell Stoxx stake to Deutsche Börse and Six Group

Dow Jones to sell Stoxx stake to Deutsche Börse and Six Group

12 November 2009  |  8656 views  |  0 comments
Deutsche Börse begins pan-European blue chip trading

Deutsche Börse begins pan-European blue chip trading

02 November 2009  |  6676 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Register nowvisit www.capgemini.com

Who is commenting?

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15880 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8992 views comments | 16 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8104 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7172 views comments | 9 tweets | 17 linkedin
Santander InnoVentures leads $6m funding round for Mexico's ePesosSantander InnoVentures leads $6m funding r...
6312 views comments | 6 tweets | 3 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job