Canaccord Financial Inc. (CF) plans to pare positions in Canada after cutting 234 jobs in the U.S. and U.K. on its takeover of British brokerage Collins Stewart Hawkpoint Plc.
“While we’ve added significant capabilities to our businesses in the last year, we’re also taking actions to remove costs from our operations, ensuring more revenue hits our bottom line,” Paul Reynolds, Canaccord chief executive officer, said today at the firm’s annual investors meeting in Toronto. “We’re committed to managing our business as efficiently as we can in this operating environment.”
Canaccord, Canada’s largest non-bank brokerage, started last week by cutting eight advisers and eight support positions in Montreal, Reynolds said. The Toronto-based firm pared 150 U.K. jobs and about 84 U.S. positions as part of its March takeover of London-based Collins Stewart Hawkpoint, he said.
Canaccord will disclose details of revenue synergies and cost savings from the takeover when it reports fiscal first- quarter results next month, Reynolds said.
The firm’s second quarter will be better than a “difficult” first period due to benefits of cost-cutting and fees from advising on large takeovers expected to close by then, Reynolds said.
Canaccord deals include advising Viterra Inc. (VT) on its takeover by Glencore International Plc (GLEN), and advising Extorre Gold Mines Ltd. (XG) on its takeover by Yamana Gold Inc. (YRI), Reynolds said.
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