Bourse operator ASX warns of potential job cuts under ‘targeted restructure’

By Thomson Reuters Feb 15, 2024 | 5:36 PM

(Reuters) – Australia’s bourse operator ASX said on Friday it could cut around 3% of its non-project workforce across several divisions, as part of a targeted restructuring it initiated last week.

The bourse operator said it expects to achieve about A$11 million ($7.18 million) of savings, as a result of the restructuring.

“The targeted restructure is intended to allow us to better direct resources to prioritise the most strategic and efficient outcomes for the Group,” ASX Managing Director Helen Lofthouse said.

ASX has multiple expense management initiatives under way including the reductions of use of contractors and consultants.

The bourse operator added it has begun exploring options for its interest in New York startup Digital Asset Holdings, after it completed a 45% stake sale in Yieldbroker during the first half of fiscal-year 2024.

ASX also said its half-year underlying net profit after tax fell 7.8% to A$230.5 million ($150.38 million), due to higher operating expenses, arising from certain one-off regulatory and compliance costs, in addition to more investment in projects.

However, it reiterated its previous total expenses growth forecast of between 12% and 15% for fiscal 2024, while adding that the total expenses figure in the second half of the current fiscal year is expected to be lower than the first half.

“We confirm that business rationalisation actions are underway to reduce the total expense growth rate in FY25,” Lofthouse said.

Meanwhile, the company declared a dividend of 101.2 Australian cents per share.

($1 = 1.5328 Australian dollars)

(Reporting by Archishma Iyer in Bengaluru; Editing by Shinjini Ganguli and Matthew Lewis)