NYSE to slash fifth of workforce

The group said it would cut around 520 staff following its March takeover of the Archipelago Holdings, an electronic trading platform.

NYSE said the move would reduce costs and also eliminate duplicated services.

When NYSE became a listed company after the Archipelago deal, chief executive John Thain promised to cut costs by $200m (£105m) by the end of 2007.

Shake-up

So far he has axed almost 35% of its workforce - or almost 935 jobs. The latest round of cuts will include more than 120 consultants.

News of the latest job losses came a week after the NYSE said it would close down one of its five trading rooms around Wall Street as part of its overhaul.

The cuts come as the company is trying to gain shareholder and regulatory approval for its $20bn merger with the pan-European Euronext exchange.

For the 214-year-old NYSE, the addition of Euronext attracts businesses which may have been put off by the extensive US regulation implemented after a series of corporate scandals, including the collapse of energy giant Enron.

A merged exchange has more appeal as traders, investors and issuers are all keen to reduce transaction costs - especially in clearing and settlement.

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