Second Largest Stock Exchange Now Makes Unexpected Job Cuts

January 31, 2024

The second largest US stock exchange now makes unexpected job cuts as it integrates software provider Adenza.

Nasdaq is set to cut hundreds of jobs as it integrates recently acquired software provider Adenza into its systems and aims to consolidate operations and minimize redundancies across the combined businesses, Bloomberg reported Tuesday.

The New York-based company may shed some roles and reallocate others while it integrates Adenza’s New York and London offices into its own locations as part of its global streamlining process, people familiar with the matter told the publication.

Following the acquisition last year, Nasdaq started a review of its offices and organizational structure to optimize certain teams and technology.

While this strategy could still change, the initial work has identified opportunities to pare down some roles to avoid duplication, though the final number impacted has not yet been determined, reports BankingDive.

As of September 30, Nasdaq had approximately 6,590 employees, while Adenza had 2,000 before the deal was announced in June, Bloomberg noted.

The second-largest stock exchange in the U.S. has leaned more toward technology rather than on revenue from volatile market data and transactions under its CEO Adena Friedman.

In a bid to move beyond its roots as a stock and bonds exchange and diversify its technology and intellectual property portfolio, Nasdaq acquired Adenza in a $10.5 billion deal — its biggest-ever deal that expanded its financial technology footprint.

The deal closed in November, giving Thoma Bravo LLC, Adenza’s parent company, a 14.9% stake in Nasdaq and making it the company’s second-highest shareholder, according to Bloomberg.

Thoma Bravo and Calypso Technologies merged with AxiomSL and created Adenza in 2021.

The company specializes in selling regulatory, compliance and risk management software to financial services institutions.

A representative for Nasdaq declined to comment to Bloomberg.

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Also Read: A Massive US Bank is Now Closing Credit Cards

Other Layoff News Today

A massive clothing retailer will now lay off 357 employees, including 200 at its corporate headquarters, sources report.

Outdoor recreation retailer REI is cutting its workforce for the third time in less than 12 months, reports RetailDive.

Recreational Equipment, Inc., doing business as REI, is an American retail and outdoor recreation services corporation.

It is organized as a consumers’ co-operative.

REI sells camping gear, hiking, climbing, cycling, water, running, fitness, snow, travel equipment, and men, women and kids clothing.

In a Thursday announcement from CEO Eric Artz that was shared with employees, the executive said 357 people will be laid off — 200 employees at its Sumner, Washington, headquarters, 121 in distribution centers and 36 in other roles, including experiences.

Non-headquarters store-specific roles are not affected by the layoffs, the company said.

Those being let go were notified in one-on-one conversations on Thursday, REI said.

Employees whose jobs were cut will receive separation benefits that include severance, continuation of health coverage, and outplacement support and services.

Last February, REI laid off 167 people at its corporate headquarters as part of a restructuring.

In October, the outdoor retailer cut 275 people in a store operations overhaul.

REI has about 16,000 employees and about 180 locations in the U.S., according to its website.

In addition to this round of job cuts, Artz said the company will pursue additional cost-cutting measures this year.

They include not funding merit increases for headquarters employees, including for leaders, this year.

REI also said it will not backfill recently vacated leadership positions and it will reduce the size of its senior leadership team by 22% this year.

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Also Read: A Massive Furniture Company Now Lays Off 1,650 Employees

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