Leonteq restructures, to cut 50 jobs

Leonteq, Zurich-based group specializing in structured investment products, intends to reduce the cost by 10 million Swiss francs within the end of 2017. The group, it said in a note today, plans to cut 50 jobs worldwide.
The Zurich company will waive new hires. The Leonteq's staff should reach 480 units. Since 2018, however, the rate of new hires should grow by 5% a year.

However, today, co-founder and CEO Jan Schoch, will outline the new targets. The company will introduce new key performance indicators reflecting new business setup, with four KPI targets to be reached by the end of financial year 2020. The more focused business model will allow further cost savings, the company said in a statement on its Website today.

Investment solutions is required to increase growth of the transaction volume to 15% from a current 14%. And banking solutions needs to boost the number of platform partners to 10 from a current three. At insurance and wealth planning, the platform partners are set to be increased to five from one.
In terms of distribution to shareholders, Leonteq intends to pay a minimum dividend of CHF 1.75 per share for 2016 onwards, as the statement reported.
Leonteq’s new setup with three distinct businesses will be effective as from 1 January 2017.