11 December 2009 News

 

ITG announces US job cuts

Investment Technology Group has announced a restructuring focused primarily on US operations, to try and position the company for long-term profitable growth.

The restructuring includes targeted staff reductions primarily in the US. "The ITG management team shares my sincere regret in having to reduce staffing levels," said chief executive and president, Bob Gasser. "However, these actions ensure that ITG will remain on solid financial footing even if net US institutional fund outflows persist."

ITG expects to see annualised pre-tax cost savings of approximately $25 to $28 million (£15 - £17 million) starting in 2010. The company will incur charges of approximately $24 to $27 million (£14.7 - £16 million) on a pre-tax basis, or between $0.35 and $0.38 (£0.21 - £0.23) per diluted share after taxes in the fourth quarter of 2009. These charges include costs related to employee severance, charges related to the consolidation of leased facilities and write-offs of capitalised software and certain intangible assets primarily due to changes in product development priorities.

"With no signs yet of recovery in US institutional equity fund flows, these measures aggressively address the current operating environment and enable us to improve margins and enhance shareholder returns," said Gasser. "We are realigning resources and investment spending with an enhanced focus on key clients who partner with ITG and are willing to compensate us appropriately for our content and services."