Canaccord Genuity is spending $12m cutting jobs in London and reorganizing its UK, blaming the move on the political and market uncertainty created by Brexit.
Canada's largest non-bank brokerage said in a statement that its wealth management arm will be unaffected, which means it is the brokers and traders at the capital markets arm who are in the firing line.
Canaccord said it was downsizing in response to a "prolonged period of political and market uncertainty in the UK", which has hit capital markets activity. The company, which had 192 employees in UK capital markets as of Dec. 31, did not specify how many of them will lose their jobs, saying only the move amounted to a "significant reduction".
The plan we have announced today will allow us to redeploy excess capital from our UK capital markets business"
Tens of employees have already been earmarked for redundancy, according to people familiar with the matter, including its senior staff in equities, corporate broking and equity capital markets.
"The plan we have announced today will allow us to redeploy excess capital from our UK capital markets business," Chief Executive Officer Dan Daviau said in the statement. "We remain deeply committed to growing our wealth management business in the UK and Europe."
The company joins other major financial institutions that are shifting operations because of Brexit. JPMorgan is pushing about 300 London-based investment-banking staff to sign fresh contracts confirming they'll leave the UK in the event of a no-deal Brexit, people familiar with the matter said last week. In February, Bank of America Corp. began moving about 400 staff to its expanded European operations.