The reorganisation will lower costs by Skr578 million and result in lower revenues of Skr105 million on a yearly basis, as the company streamlines its business with an increased focus on the financial markets.

In a statement announcing the measures, the company says: "OM's markets remain weak and no turnaround is expected in the short term."

The energy market business area and the OM Technology product portfolio are most affected by the overhaul. OM says negotiations are already underway to sell the UKPX and NGX energy exchanges, while the marketplace and clearing systems for energy exchanges are being transplanted to the financial markets business.

OM is also planning major surgery on its technology operations product portfolio, including the consolidation of solutions for corporate actions, front office and settlement. The vendor says it will divert savings to increase investment in providing services for existing customers.

As a result of the changes, OM's operations in Edinburgh are being closed down and parts divested with effect from tomorrow. OM's operations in Copenhagen are also being shut down. At the same time, OM will focus its North American operations in New York and its German operations in Hamburg.

Magnus Böcker, acting CEO OM, says: "Implementing these measures will enable OM to reach an acceptable level of profitability within all business areas from the first quarter 2004."

Approximately 240 jobs will be lost through redundancies, of which 220 are from OM's technology operations and of which just over 100 have previously been announced in March this year. Approximately 200 of the 240 affected positions are in Sweden. In total, 360 jobs are expected to be eliminated, including 70 positions within divested companies and 50 consultants.

The Skr578 million saving resulting from the reorganisation includes a figure of Skr60 million quoted from the March cost-cutting programme. The total net cost of implementing these measures is estimated at Skr544 million after tax.