TMX Group to cut 100 positions
Job losses follow takeovers
TMX Group Ltd. plans to eliminate 100 positions over the next 12 months as part of its integration of two recently acquired businesses under a new ownership structure.
The stock exchange operator's president and chief executive, Thomas Kloet, announced the job cuts in a quarterly conference call with analysts.
"Corporate support functions are now in the process of being integrated across the companies which will deliver both operational efficiencies and cost savings," he said.
TMX Group had about 1,300 employees overall at the end of September, including about 400 that recently joined the Toronto-based company.
Kloet says the top priority for TMX Group in the coming months will be the integration of the Alpha Trading and CDS businesses into the overall organization.
TMX Group acquired Alpha and CDS as part of a larger deal that saw members of the Maple Group become the largest shareholder bloc at the company, which owns the Toronto Stock Exchange and other financial markets.
"Ultimately all of the changes we are making are intended to improve execution, enhance efficiency, and allow us to deliver greater value to our customers," he said.
"Achieving the right organizational structure and cost base will position us to fund the future innovations needed to be the most effective business partner possible for our customers and all our stakeholders."
TMX reported Friday that it had $15.3 million of net income, or 53 cents per share, attributable to TMX Group Ltd. shareholders and $113.4 million of revenue over the two months following the reorganization.
The earnings include 14 cents per share of costs related to the Maple process and 18 cents per share related to the related acquisition activity.
For the full three-month quarter, TMX Group Ltd.'s revenue was $162.3 million.
Revenue was down about $5.5 million compared with a year earlier when the original TMX Group Inc. alone generated $167.8 million of revenue.
Revenue from the recently acquired Alpha Trading business was $3.2 million from the months of August and September while revenue from Canadian Depository for Securities Ltd. contributed $14.8 million over the same two months.