Deutsche Boerse set out the details of its restructuring program, designed to allow the company to achieve the efficiency improvements announced in September. The vast majority of the savings to the sum of around EUR 100 million from 2010 onwards will stem from non-personnel costs.
Personnel measures will involve relocating positions and streamlining others involving 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, the group says.
Deutsche Boerse aims to reduce its cost base by EUR 50 million in 2008, and by EUR 75 million in 2009. This drive for efficiency was prompted by pressure from hedge fund shareholders, who eventually toppled the previous CEO Werner Seifert.
From 2010 onwards, the full potential of the program will be realized with annual savings of EUR 100 million. Reduced non-personnel related costs will contribute around 95% of the savings in 2008, around 90% in 2009 and around 85% from 2010 onward. These cost cuts will be achieved primarily thanks to process optimisation 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 central functions and IT in order to improve efficiency, while some vacant positions will be cut.
In addition, new hires in market oriented areas will create new positions. 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 Boerse 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.