Cboe Global Markets is cutting about 20% of its global workforce as part of a restructuring exercise aimed at sharpening focus on its core exchange businesses. This impacts roughly one in five employees out of its global workforce of around 1,670. A memo sent by CEO Craig Donohue, reviewed by The Wall Street Journal, confirmed that layoff notices were issued on Friday.
The workforce reduction also includes earlier steps such as winding down non-core operations and selling certain business units. The company said the changes are part of a broader effort to streamline operations and improve efficiency.
Voluntary retirement option for older employees
Alongside layoffs, the company is offering a voluntary retirement programme for eligible employees in the United States and Canada. This applies to workers aged 55 and above who have completed at least five years with the company and are not part of the layoffs. It also allows the company to manage exits without additional layoffs.
CEO explains reason behind layoffs
“Our earlier actions to sell, wind down, and optimize certain businesses, combined with today’s strategic realignment, are expected to reduce our workforce by approximately 20 percent,” Donohue said in a statement.
The company said it wants to create more agile teams through this restructuring. It also aims to free up resources for investment in new growth areas. These include financial and economic event markets and tokenization initiatives. The focus is on aligning resources with businesses that drive long-term growth.
Strong earnings despite job cuts
The layoffs were announced along with the company’s strong first-quarter 2026 earnings. Cboe reported record net revenue of $728.9 million, up 29% from a year earlier. Diluted earnings per share rose 54% to $3.66. CFO Jill Griebenow said all business segments showed growth during the quarter. The strong performance highlights that the restructuring is not driven by weak financials.
Cost savings and future plans
Cboe expects the restructuring to generate savings of $20 million to $25 million in 2026. The company has also lowered its full-year operating expense guidance. At the same time, it raised its revenue growth outlook to a “low double-digit to mid-teens” range. It plans to reinvest savings into areas like clearing services in the US and Europe, as well as sales and investor education. The company is also expected to hire in emerging areas even as it reduces overall headcount.
Companies are increasingly shifting focus to high-growth areas such as prediction markets and advanced financial products. Cboe recently sold its Canadian and Australian businesses to TMX Group for $300 million as part of its divestment plan. “Following a thorough strategic review and the adoption of a more rigorous financial and strategic framework in the second half of 2025, we announced a realignment to increase focus and investment in the core businesses that drive our earnings,” Donohue said.