Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Knight Capital To Cut About 5% Jobs After Restructuring

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
A ban on athletes using stamina-boosting gases - xenon and argon - came into effect on Monday. The World Anti-Doping Agency (WADA) said Hypoxia-Inducible Factor (HIF) activators Xenon and Argon have been added to the 2014 List of Prohibited Substances and Methods List following the required three-month notice period and UNESCO's communication to all States Parties. A recommendation to revise the British manufacturing growth eased further in August to its lowest level in 14 months as output and demand increased at slower rates, survey results from Markit Economics showed Monday. The Markit/CIPS Purchasing Managers' Index dropped to 52.5 from a revised 54.8 in July. Economists had expected the score to fall to 55.1 from July's original figure of 55.4. Consumers spent less in July than in the previous month, a surprise retreat that complicates the prevailing belief that the U.S. economic situation is improving. Along with the unexpected drop in spending, government figures released on Friday showed that incomes rose at a slower pace in July than in the previous month. Meanwhile, data on prices indicated that inflation pressures remain tame.
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.