JSE retrenches staff in cost-cutting measures
According to the JSE, a two-year cost-cutting programme could see up to 14 percent of its staff retrenched.
Nicky Newton-King (pictured), JSE CEO, said in a statement:
"We are taking these difficult steps, particularly regarding our staff, while recognising our responsibility to operate the JSE so as to enhance the trust in the South African financial markets The fast pace of this change requires us to adjust the way in which we operate so that we are as nimble and as cost effective as possible. To do this, we need to significantly re-engineer our cost base, our operating model and the way we are structured as a business."
According to the statement, the JSE intends to decrease its overheads by R170 million by 2019. It is starting a consultation process in terms of section 189A of the Labour Relations Act as part of this, which may lead to the retrenchment of about 60 of its full-time staff.
The cost-cutting measures include reducing its information technology expenses by at least R70 million over two years. According to the JSE, it has already achieved some R65 million in annualised savings to date, through a combination of removing vacancies and reducing discretionary expenditure.