As merger approaches, LSE and Deutsche Boerse eye job cuts and IT savings
01 June 2016 | 5452 views | 0
The London Stock Exchange says that its planned merger with Deutsche Boerse could see up to 1250 jobs axed as the combined firm bids to make hundreds of millions of euros in cost savings, partly through technology.
The job losses are likely to be partially offset by the creation of around 550 new roles, meaning that the combined 8000-strong workforce will be cut by less than 10%.
In a presentation, the LSE says that the merger is expected to produce cost savings of EUR450 million per annum by the third year, with 50% of this coming thanks to "technology enabled efficiencies".
The two exchanges plan to harmonise their trading and post-trade platforms, remove duplicate tech functions, and reduce project spending in "optimised IT infrastructure".
Meanwhile, the mega-merger is also expected to boost revenues by EUR250 million per annum in year five, with reference data, regulatory reporting and tech services accounting for 20% of this.