Investment Technology Group has announced a savage cost reduction plan in a bid to move $20 million off the bottom line in the face of continued weakness in institutional equity trading volumes in the US and Europe.
The agency research broker and financial technology firm says the cuts will fall on employment, consulting, and infrastructure.
ITG has not revealed details of the job losses, but says cost savings will begin to take effect during the third quarter of 2011.
ITG CEO and president, Bob Gasser, says: "While the reduction in staffing levels is painful, the ITG management team and I believe that these measures are critical to our long-term success."
The company is to take $16-$18 million in pre-tax charges related to the cost-cutting in the second quarter. It will also incur a maximum $230 million goodwill impairment charge in its US reporting unit to better reflect market values.
As a result, ITG expects to post a second-quarter loss of between $4.62 and $5.18 per share.