CME Group Lets Go 5% of its Workforce, Mainly From Technology Department

CME Group Inc (NASDAQ:CME), has just announced in a company public statement that it will be cutting its workforce by 5% this week. The move is part of a recently announced restructuring and affects approximately 150 positions.

The main section of operations where the company will cut jobs is the technology department, with the remaining layoffs coming from corporate and administrative personnel.

CME Group’s (NASDAQ:CME) Executive Chairman and President Terry Duffy explained in the company’s announcement that "Our industry has transformed significantly over the past five years, with the advent of OTC Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term and other changes. As difficult as this decision is, the efficiencies we have built are allowing us to make this change to our structure.”

"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,” he added.

The company’s CEO Phupinder Gill said, ”Given changing market dynamics, CME Group reorganized its leadership structure last month to better serve our global client base. With these changes, I am confident we will effectively align our resources and focus on areas of new growth across the globe.”

According to the announcement affected CME Group Inc's (NASDAQ:CME) employees will be eligible for severance and outplacement services offered through BPI Group. The company's share price rose almost 2% as the announcement hit the wires.