JSE cost cutting threatens jobs

July 09 2017 – THE Johannesburg Stock Exchange (JSE) has come up with  a number of initiatives aimed at reducing annualised costs of by millions of rand. 

This entails  a reduction in the JSE’s technology operating expenditure by a minimum of R70 million over a two-year period, and a consultation process in terms of section 189A of the Labour Relations Act.

The JSE said the section 189A process could result in the retrenchment of at least 60 people, or 14 percent of headcount of the full-time staff complement. These initiatives, the JSE said, will reflect from the 2018 financial year.

The JSE said it has already achieved about R65 million in annualised savings through “removing vacancies” and “reducing discretionary expenditure”.

Chief executive of the JSE, Nicky Newton-King, said that the country continued to be plagued with low economic growth, rating downgrades and a loss of business confidence, on a macroeconomic level, and this had negatively impacted financial market activity this year. 

“In addition, global securities exchanges and other players in the financial services industry are changing the way in which they operate in response to regulatory and technology developments,” Newton-King said in a statement. 

“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. 

“We are taking these difficult steps, particularly regarding our staff, whilst recognising our responsibility to operate the JSE so as to enhance the trust in the South African financial markets.”

Newton-King said the JSE remained focused on the successful delivery of its post-2017 strategies. –ANA