Canaccord to cut 20 percent of brokers in Canada

Tue Mar 31, 2009 12:54pm EDT
 
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TORONTO (Reuters) - Investment bank Canaccord Capital will slash 20 percent of its brokers in Canada, its second staff reduction in five months, a spokesman for the company said on Tuesday.

The decision makes Canaccord the latest Canadian financial services company to issue pink slips because of the global financial crisis that has dragged major stock indexes to their lowest levels in years.

Canaccord said it will shed 75 broker positions in the coming months out of a combined 375 across the country.

"Over the next 90 days those transitions will occur," Scott Davidson, a spokesman for Canaccord told Reuters. "It's spread throughout the country on a reasonably even basis."

Davidson also said the decision to cut the positions was because of "business strategy" rather than a reaction to tough global financial markets.

Vancouver, British Columbia-based Canaccord has operations in Canada, Britain and the United States.

The news comes a day after Bermuda-based futures and options broker MF Global Ltd said it had closed its three Western Canadian offices, which had 26 brokers in Vancouver, Calgary and Winnipeg.

Last October, Canaccord said it would cut about 170 jobs, or 10 percent of its global workforce, and cut senior executive salaries by up to 20 percent in an effort to reduce costs.

Shares of Canaccord, which are up about 32 percent in 2009, were down 3 Canadian cents, or 0.6 percent, at C$5.32 on the Toronto Stock Exchange ahead of midday.

(Reporting by Frank Pingue; editing by Rob Wilson)