CBOT Announces Workforce Reduction

The Chicago Board of Trade (CBOT) has announced a 5% reduction in its workforce. CBOT Holdings President and CEO Bernard W. Dan said, "Our recent investments in technology and successful technology partnering arrangements have significantly enhanced the services we provide

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The Chicago Board of Trade (CBOT) has announced a 5% reduction in its workforce.

CBOT Holdings President and CEO Bernard W. Dan said, “Our recent investments in technology and successful technology partnering arrangements have significantly enhanced the services we provide to our global market participants and have created a more efficient operating model. As we wind down our work related to these enhancements, we need to realign our technology and operations resources by reorganizing responsibilities, rationalizing consulting resources, streamlining processes and reducing our workforce in these areas.”

The workforce reduction, which is expected to be completed before December 31, 2005, will affect approximately 40 people. As a result of this realignment, an estimated charge of about $1.9 million to $2.1 million for severance and related costs is expected to be incurred in the fourth quarter of 2005. Most of these costs are expected to be paid in 2006. Potential cost savings from this realignment are estimated to range from $9 million to $11 million per year, beginning during the first quarter of 2006.

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