Global trading technology provider and agency broker ITG plans to slash its workforce in the US as it embarks on a restructuring plan aimed at achieving long-term profitable growth. The company did not reveal the extent of the cuts.
Bob Gasser, ITG’s president and CEO, said the restructuring programme was necessary because of continued challenges in US institutional equity fund flows.
“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,” said Gasser, in a statement. “Our primary aim is to build on our industry leadership while positioning ITG for leveraged returns when assets begin to flow back into US equity funds. We maintain our commitment to the highest level of service and reliability for our core clients around the globe.”
On the job cuts, Gasser added, “The ITG management team shares my sincere regret in having to reduce staffing levels. However, these actions ensure that ITG will remain on solid financial footing even if net US institutional fund outflows persist.”
ITG made a net profit of $50.6 million in the first nine months of 2009, down from $85.9 million in the same period of 2008. Nine-month revenues also fell to $482.1 million in 2009 from $572.9 in 2008.
The company expects to incur pre-tax charges of approximately $24-$27 million in Q4 2009. The costs are 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.