Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Knight Capital To Cut About 5% Jobs After Restructuring

2/5/2013 12:46 AM ET

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
Russian Foreign Minister Sergei Lavrov warned Wednesday that Moscow would retaliate strongly if its "interests" in Ukraine are attacked. He also criticized the Ukrainian administration for relaunching its so-called anti-terrorist operation in the east of the country a day earlier. Lavrov's remarks came in an interview with Russia Today, which published excerpts of the English-language interview to While selling pressure has remained relatively subdued, stocks continue to see modest weakness in mid-day trading on Wednesday. The losses on the day come on the heels of the upward trend seen over the past several sessions. The major averages have moved roughly sideways in recent trading, lingering in the red. While a majority of Kentucky voters approve of the way Rand Paul is handling his job as Senator, the results of New York Times/Kaiser Family Foundation poll showed that voters from the Bluegrass State have a more mixed view on Paul's potential run for president in 2016.
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.