Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Knight Capital To Cut About 5% Jobs After Restructuring

RELATED NEWS
Trade NITE now with 

U.S. brokerage Knight Capital Group Inc. (KCG: Quote), in a filing on Monday, said it will reduce its worldwide workforce by approximately 5 percent as part of its corporate restructuring, which was aimed to lower operating expenses and improve financial performance.

In connection with the restructuring, Knight expects to incur a total estimated pre-tax charge between $9 and $11 million in its first quarter.

In a filing with the Securities and Exchange Commission or SEC, Knight Capital said that on January 30 it completed the restructuring, which was undertaken in an effort to combine its voice and electronic sales teams and as a result of the winding-down of its correspondent clearing initiative.

The firm has given notification to employees directly affected by the workforce reduction, and they will be provided with severance payments and specified benefits.

According to the company, the charges would include employee severance and other employee benefit costs between $8 and $10 million, and capitalized software write-down of approximately $1 million. It is also expected that cash expenditures will be between $4 and $5 million.

Knight said it expects that there will be additional costs related to the winding-down of its correspondent clearing initiative but such costs cannot be determined at this time.

Knight Capital closed Monday's trading at $3.68, down $0.04 or 1.08 percent.

Register
To receive FREE breaking news email alerts for Knight Capital Group, Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Specialty drugmaker Horizon Pharma plc (HZNP) on Friday managed to redomicile itself as an entity incorporated in Ireland following the completion of its $660 million acquisition of Vidara Therapeutics International plc. The deal will help it avoid paying the high rate of U.S. corporate taxes. The... Stocks showed a lack of direction over the course of the trading day on Friday after failing to sustain an initial upward move. Despite the choppy trading, the Dow once again managed to end the session at a new record closing high. The major averages turned in a mixed performance on the day. President Barack Obama delivered a statement Thursday evening thanking members of Congress for voting to approve legislation granting the U.S. military the authority to train and arm moderate Syrian rebels fighting against the terrorist group known as the Islamic State.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.