New LSE chief axes 133 staff in bid to cut costs

Published on Thursday 24 September 2009 21:14

XAVIER Rolet, the new head of the London Stock Exchange, yesterday revealed 133 staff had been axed as he attempts to reduce costs at Europe's oldest independent bourse.

Rolet said the 12 per cent cut in staff numbers had been forced on the business by a fall in trading activity. The LSE has also been hit by increasing competition and said the number of people taking live stock pricing from its terminals in the UK had fallen by 10,000 to 94,000.

Rolet, the former Lehman Brothers banker who succeeded Clara Furse as chief executive at the exchange in May, said the group was reviewing its growth strategy amid difficult trading conditions.

"Although market conditions remain challenging, the group continues to see good levels of activity in many parts of the business. We continue to take actions to ensure the group is well-placed to compete and develop".

Rolet told analysts that the group was seeking new partnerships with other exchanges to boost growth, adding that the LSE was prepared to consider further acquisitions.

While the group would not name any potential targets, chief financial officer Doug Webb said the group had 300 million of unused debt facilities, which could be used to fund any deals.

LSE has been boosted in recent days by rumours that Deutsche Brse may bid for the company, but yesterday the shares fell 27p, or 3.1 per cent, to 852.5p.