NYSE Lost $3 Million in 1990

The New York Stock Exchange lost $3 million in 1990, its first loss in nearly 20 years, as it took on special charges to cut more than 300 jobs from its payroll.

The one-time charge of $10.6 million was split nearly evenly between early-retirement benefits and severance payments for laid-off workers, said Sharon Gamsin, exchange spokeswoman. Attrition since the start of 1990 also contributed to the staff reductions, she said.

Employment by the exchange totaled about 1,620 at the end of the year, down from about 1,950 at the start of 1990.

The exchange earned $6.3 million in 1989. Revenue in 1990 fell to $348.6 million from $349.2 million the year before.

The last time the exchange posted a loss was 1971.

Member firms pay a fee to the exchange as well as fees for various services.

The number of member firms slipped last year to 516, compared to 535 at the end of 1989. The number of listed companies, which also pay a fee, rose to 1,774 last year from 1,720 the year before.

The exchange added staff members and increased automation during the 1980s as trading volume and the value of stocks soared. However, volume has shrunk since the October, 1987, crash, leading exchange officials to believe that they were entering a sustained downturn.

With the staff cuts in place, “we think we’re very well-positioned now to keep costs of operations under control,” Gamsin said.