Agency brokerage and fintech provider Investment Technology Group (ITG) is set to cut staff, mainly in the US, as part of a restructuring plan, saying there are "no signs yet of recovery in US institutional equity fund flows".
The restructuring will see consolidation of leased facilities and write-offs of capitalised software as well as staff cuts in a bid to find annualised pre-tax cost savings of between $25 million and $28 million from 2010.
The firm will take a pre-tax charge of $24 million to $27 million, or 35 cents to 38 cents a share after taxes, in the fourth quarter.
ITG's chief executive officer and president, Bob Gasser says: "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."
In October, ITG posted third quarter net income of $17.5 million, down from $27.2 million for the same period the previous year.