London Stock Exchange slashes 250 jobs as it prepares for Brexit
The London Stock Exchange announced hundreds of job cuts on Friday as the operator gears up for Brexit after recording a strong set of full-year results that met market expectations.
London Stock Exchange (LSE) announced that it will cut around 250 jobs on Friday as part of its preparations for Brexit, after the exchange operator delivered a good set of full-year results that saw its share price rise more than 6% on Friday morning.
The decision to cut jobs at the exchange operator was made by ex-Goldman Sachs veteran David Schwimmer, who took the helm at LSE back in August last year. The job cuts will help the LSE generate around £30 million in cost savings.
The new CEO has taken steps to ensure that the bourse has limited exposure to Brexit, with concerns over how Britain’s departure from the EU will impact clearing and trade volumes at the LSE.
‘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,’
London Stock Exchange results: key figures
Total revenue increased by 8% to £1.91 billion in 2018, with total income at the bourse climbing 9% to £2.13 billion compared to the previous year.
LSE also saw its adjusted operating profit increase by 15% to £931 million and its earnings per share rise 17% to 173.8p a share, prompting the exchange operator to increase its final dividend to 43.2p a share, reflecting the company’s confident outlook.
London Stock Exchange post-Brexit preparations
The exchange operator’s pan-European share trading platform Turquoise recently applied for a license to open a hub in Amsterdam so that the company can continue to service EU customer post-Brexit, with Dutch regulators backing move.
Earlier this week, Theresa May was urged by MPs in parliament to take a no-deal Brexit off the table. The news will likely be welcomed by Schwimmer who told reporters that if Britain can secure a transition deal with the EU, share trading of euro-denominated stocks will remain firmly in London.
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