LSE to cut 250 jobs, drops margin target

LONDON: London Stock Exchange Group Plc (LSE) announced a round of job cuts on Friday after posting in-line results under its new boss, former Goldman Sachs veteran David Schwimmer, as the bourse readies for Brexit.

Schwimmer, who took charge last August, said businesses, including those perceived to be most exposed to Britain’s impending exit from the European Union on March 29 such as clearing, continue to perform well, with no change in market position. “We are very well prepared for whatever comes from a Brexit situation,” Schwimmer told reporters.

“We expect international growth opportunities to offset any market headwinds in 2019.” The LSE’S pan-european share trading platform Turquoise has applied for a licence to open a hub in Amsterdam to serve EU customers after Brexit, and Schwimmer said authorisation from Dutch regulators was imminent.

But if Britain secures a transition deal with the EU, share trading of euro denominated stocks would remain in London, Schwimmer said.

The exchange said it would cut 250 staff in 2019 to generate £30 million in annual savings, but that it would not meet its target of core earnings margin of about 55 per cent in 2019 as it spends on the business.

Schwimmer said the cuts would come from across its operations and focus on cutting duplication.

The LSE said its adjusted operating profit rose 15 per cent to £931 million in 2018 while total income rose 9 per cent to £2.14 billion. — Reuters