Deutsche Borse (DB), a marketplace provider, announced the details of its “Roadmap 2020” strategy at its annual Investor Day in London this Wednesday. The industry giant will focus on reducing structural costs, increasing revenue and technological development.
Theodor Weimer, CEO of DB, discussed the company’s future plans, saying: “With ‘Roadmap 2020’, Deutsche Borse is preparing itself for the future and for further growth in the best manner possible. We will be focusing even more consistently on the scalability of our business model and on enhancing our operational processes.”
The company aims to reduce its structural costs by approximately $100 million by the end of 2020. Today’s strategy announcement suggests the firm will be cutting 350 jobs – 50 of them in managerial positions.
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Technology and acquisitions
That money will be put towards a $300 million investment in new technology. This investment should create several hundred new jobs, but it’s uncertain as to whether those losing their jobs would be able to move into these newly created ones. DB noted that the majority of these investments, totaling $200 million, would take place in 2018.
DB also stated that they intend to acquire firms specialising in fixed-income securities, energy products, currencies, investment fund services, as well as data and indices. Whether these plans are wrapped up with the firm’s technological investment is unclear. The early stages of this part of the company’s strategy might have been on view this morning as the firm announced it had acquired GAIN Capital’s GTX ECN for $100 million.
Alongside the job cuts and technological investment, the firm intends to maintain a 5 percent per annum growth rate in terms of revenue. As a corollary of this, the firm noted it would be targeting a 10 to 15 percent increase in profits per annum.