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CME Layoffs Hit Technology Group Hardest

CME Group's restructuring will eliminate 5% of the workforce.

A majority of the layoffs due to the CME Group’s recently announced restructuring will come from the technology group, according to the exchange operator.

CME Group is reducing its global workforce by about 150, or roughly 5%, according to the company. Most layoffs will come from technology, with the remainder 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 and president Terry Duffy, in a statement. "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 employees who are affected will be informed this week. The company is offering severance packages, as well as outplacement services through BPI Group, according to CME.

Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio

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Greg MacSweeney
Greg MacSweeney,
User Rank: Author
10/15/2014 | 1:47:30 PM
Re: Is technology responsible for staff cuts?
Yes, i think that is accurate. It seems that the technology improvements have made CME more efficienct and are one of the reasons for the layoffs.
User Rank: Author
10/15/2014 | 9:24:34 AM
Is technology responsible for staff cuts?
In your article, CME Chairman Terry Duffy cites the OTC  transformatin and OTC clearing specifically. He is  indirectly referring to the requirements for electronic trading and clearing of OTC derivatives under Dodd Frank. Can we infer that technology has made it possible for CME to make these staff cuts, ironically in the technology department? Technology makes it possible to do more with less. Another issue is expense control. CME's 2nd quarter volumes were down 12% from a strong second quarter in 2013, so that is evidently behind the cost cutting.
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