Institutional Financial Markets is cutting 20% of its workforce as the investment firm consolidates its PrinceRidge and JVB Financial Group units into a single broker-dealer.
That would mean the end of PrinceRidge, which was started by two UBS AG bankers in 2009. IFMI had 197 full-time staff as of 31st December, according to the company’s annual report.
'Taking these steps will allow IFMI to enhance profitability', CEO Lester Brafman said in the statement. 'Becoming a leaner and more efficient company means making a number of difficult decisions, including reducing the size of our workforce'.
PrinceRidge was among 70 debt-trading startups in 2009 that sought to capitalize on banks pulling back from markets amid the worst financial crisis since the Great Depression. Many of the younger firms have struggled in the past two years as larger companies reasserted their dominance and credit trading slumped.
IMFI will take a pretax charge of $2m to $2.5m in the fourth quarter for employee and vendor termination expenses, according to the statement.
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