LSE axing 120 in restructure

THE LONDON Stock Exchange Group (LSE) is negotiating the redundancy of up to 120 staff, with at least 60 London-based employees to be affected, as the new chief executive Xavier Rolet acts on his promise to make the group operate more cost effectively.<br /><br />The cuts, which began on Wednesday, will mostly involve marketing and customer liaison staff, the majority of which will come from the LSE&rsquo;s secondary market operations.<br /><br />Primary markets staff, who are involved in cultivating relationships with prospective client firms, are expected to be hit less hard, according to sources close to the company.<br /><br />Positions will also be lost from the group&rsquo;s Milan and Rome operations, which it has owned since the acquisition of Borsa Italiana in 2007.<br /><br />&ldquo;With a new chief executive at the helm, LSE has been reviewing its operational structure and has identified changes to how it is organised,&rdquo; said an LSE spokesman.<br /><br />&ldquo;These changes will flatten the group&rsquo;s structure and improve the speed of decision making. Inevitably, they will lead to job losses as well as new opportunities for some staff.&rdquo;<br /><br />Rolet took up the reins from Dame Clara Furse &ndash; who stepped down after over eight years &ndash; on May this year.<br /><br />He quickly signalled his intent to make the group more cost-effective as he vowed to fight newcomers hoping to take market share from the 200-year old institution. Referring to new platforms such as Chi-X and Turquoise, Rolet said he didn&rsquo;t intend to see &ldquo;our competition grabbing a bigger share of the market&rdquo;.<br /><br />He recently reorganised the management structure to create a new capital markets business unit under Raffaele Jerusalmi, who previously worked at Borsa Italiana.