'Conditions remain challenging'.
ICAP, the world’s biggest broker of transactions between banks, said it will a post one-time charge of as much as $73m as it overhauls its voice broking operation.
Bloomberg News reports that the unit cut 265 jobs since the start of the year and is renegotiating brokers’ contracts to reduce pay as a proportion of revenue by three percentage points in the next fiscal year, London-based ICAP said in a statement Tuesday.
Revenue at the division will fall by about 20 percent in the six months through Sept. 30, helping to reduce group revenue by 15 percent.
'Conditions remain challenging, but we are increasing the efficiency of the group,' said Chief Executive Officer Michael Spencer, 59. 'Over the last six months we have significantly restructured the cost base across Global Broking providing increased leverage and focus.'
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