The Chicago Board of Trade (Cbot) is axing 40 jobs - or five per cent of its workforce - as part of a restructuring of its technology and operations divisions that will cut costs by up to $11 million a year.
In a statement, CBOT president and CEO Bernard Dan says recent investments in technology and successful technology partnering arrangements have significantly enhanced the services provided and created a more efficient operating model.
"As we wind down our work related to these enhancements, we need to realign our technology and operations resources by reorganising responsibilities, rationalising consulting resources, streamlining processes and reducing our workforce in these areas," he says.
The 40 jobs cuts are expected to be completed before December 31 2005.
The exchange says it will take a charge of about $1.9 million to $2.1 million for severance and related costs in the fourth quarter of 2005. Most of these costs are expected to be paid in 2006.
The realignment is expected to generate cost savings of $9 million to $11 million per year, beginning during Q1 2006.
Earlier this week The New York Stock Exchange said it was cutting 60 jobs as part of a cost-cutting and efficiency drive.