RSS Search

 News  Feeds  Tags  Search Shortcuts

FeedsFarm.com > NYSE Books $28M Charge for Job Cuts

NYSE Books $28M Charge for Job Cuts

14th Nov 2006, 00:42 GMT

The New York Stock Exchange reported Monday it will book a $28 million (EU22 million) charge to pay severance fees to more than 500 employees expected to be cut from its payrolls by March. NYSE Group Inc., the exchange's parent company, said in a filing with the Securities and Exchange Commission it will take the charge during the fourth quarter. The exchange announced Wednesday it will cut 400 employees and 120 full-time consultants as part of an effort to trim $200 million (EU156 million) from its budget. Wall Street projects the NYSE will report a profit of 45 cents per share during the quarter, according to analysts polled by Thomson Financial. The world's largest stock exchange said the cuts will eliminate duplicate services from last year's acquisition of electronic exchange Archipelago. The job cuts also come as the NYSE attempts to transform itself into an electronic marketplace, scaling back the need for floor specialists to execute trades. Since March 2005, when the exchange had 3,484 employees, there has been a reduction of 35 percent of its work force or more than 950 employees. The current round of job cuts represent about 18 percent of the exchange's employees. Modernizing the Big Board is seen as part of its efforts to more easily combine with Paris-based Euronext NV. The $10 billion (EU7.8 billion) deal to combine the two exchanges will go before shareholders in December, and still requires regulatory approval. Adding ammunition to the NYSE's deal is that its stock price has surged to an all-time high. Shares rose $1.11 to $95.59 in midday trading.

View full story at business.newsfactor.com

NYSE Books $28M Charge for Job Cuts related news:

Latest news from NewsFactor Business: