CME Group said Tuesday that as part of its recently announced restructuring the trading exchange will reduce its global workforce this week by roughly 5%, or about 150 positions. Most of the cuts will come from technology, with the balance of reductions coming from corporate and administrative functions.
"Our industry has transformed significantly over the past five years, with the advent of OTC Clearing and other changes. As difficult as this decision is, the efficiencies we have built are allowing us to make this change to our structure," said CME Group Executive Chairman Terry Duffy. "These staffing changes and other expense control measures we have taken internally will result in decreased costs and reduced management layers, and will help ensure the company's long-term continued growth."
CME Group said the company is committed to helping impacted employees through their transitions. Individuals whose jobs are affected will be informed this week and will be eligible for severance and outplacement services offered through BPI Group.
"Given changing market dynamics, CME Group reorganized its leadership structure last month to better serve our global client base," said CME Group CEO Phupinder Gill. "With these changes, I am confident we will effectively align our resources and focus on areas of new growth across the globe."
CME Group exchanges offer a wide range of global benchmark products across major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. The exchange brings buyers and sellers together through its CME Globex electronic trading platform and its trading facilities in New York and Chicago. The company also operates CME Clearing, a central counterparty clearing provider, which offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions.