Institutional Financial Markets (IFMI), a US-based financial services company specializing in credit-related fixed income investments, has axed approximately 20% of its workforce in anticipation of consolidation of its two broker-dealer subsidiaries, C&Co/PrinceRidge and JVB Financial Group, into a single unit.
IFM said all but two of the job cuts will occur outside the Philadelphia region with most of those affected being in New York.
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IFMI expects to incur pre-tax charges in the fourth quarter of 2013 for employee separation and vendor contract termination expenses of approximately US$2 to $2.5 million.
The integrated firm will operate under the JVB Financial brand following regulatory approval.
Lester Brafman, CEO of IFMI, said: "We believe that taking these steps will allow IFMI to enhance profitability by focusing on the combined strengths of C&Co/PrinceRidge and JVB Financial.
"The integrated firm will focus on areas where we believe that we have developed a distinct competitive advantage, and we will channel our resources to grow these business lines accordingly," he added.
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