Deutsche Börse targets savings through lay-offs and tech

Deutsche Börse targets savings through lay-offs and tech

Deutsche Börse has outlined plans to axe and relocate jobs and bring IT services in-house as part of a cost cutting programme designed to save EUR100 million a year.

The programme affects around 370 jobs, with 100 - three per cent of the total workforce - being axed and the rest moving from Frankfurt and Luxembourg to Prague.

Deutsche Börse says it will also reallocate operating functions within the EU, with the "integration of services sourced externally so far, such as for IT" contributing to this.

In addition, the group plans to open its new trading system for other markets, leading to further harmonisation of IT infrastructure.

Last year it revealed plans to launch a pan-European market, based on its Xetra electronic trading platform, in a bid to take on the raft of new competitors to have emerged in the wake of MiFID.

Deutsche Börse says the annual EUR100 million savings, expected to be realised by 2013, will cost around EUR200 million to achieve. These are on top of the EUR50 million in cost savings outlined in February.

At the same time, the group is stepping up investment in "growth initiatives", which have seen their budget increased by more than 50% to around EUR100 million in 2010. The money is designed to make Deutsche Börse a market leader in areas such as "technology, risk management and product innovation".

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