Deutsche Börse set out the details of its restructuring program, which is designed to allow the company to achieve the efficiency improvements announced in September, on Tuesday. The vast majority of the savings to the sum of around €100 million from 2010 onwards will stem from non-personnel costs. Personnel measures shall involve relocating positions and streamlining amongst others central functions and IT. At the same time, some external services are to be integrated. The number of employees is to remain virtually unchanged all in all. Deutsche Börse Group aims to use the program to ensure the company’s long-term success.
Employees at all locations were provided with information in the afternoon. The employee representatives received written notification in advance, and negotiations are now underway.
As announced, the Group aims to reduce its cost base by €50 million in 2008, and by €75 million in 2009. From 2010 onwards, the full potential of the program will be realized with annual savings of €100 million. Reduced non-personnel related costs will contribute around 95 percent of the savings in 2008, around 90 percent in 2009 and around 85 percent from 2010 onwards. These cost cuts will be achieved primarily thanks to process optimization and savings with respect to purchasing and building rentals.
The personnel measures are planned to affect around 300 of the 3,000 positions primarily in Frankfurt and Luxembourg. The personnel measures will not focus primarily on job cuts: certain activities shall be provided from Prague, where the company has had a subsidiary since 2006; this will affect 200 positions. Furthermore, there are plans to reduce the number of positions relating to amongst others central functions and IT in order to improve efficiency, while some vacant positions will be cut. All personnel measures are to be implemented in an amicable and socially acceptable manner and reconciliation with employee representatives is intended. Certain external services are to be incorporated as in-house functions thereby creating new positions.
In addition, new hires in market oriented areas will create new postions. To this end, the company also intends to step up its university marketing activities.
In 2010, after the program and all personnel measures have been realized in full, Deutsche Börse Group expects its headcount to be similar to what it is today. The company intends to retain its attractive remuneration system, and has no plans to reduce the benefits that it offers.
