Canaccord Genuity (TSX: CF) has announced a significant workforce reduction in Canada, cutting approximately 75 jobs, mainly from its capital markets division.
This move comes as the financial sector faces a prolonged period of low dealmaking activity. These job terminations represent about 7% of Canaccord’s Canadian workforce, which totals around 1,200 employees.
The company had previously implemented job cuts in its US capital markets unit, where around 25 individuals were laid off, constituting about 6% of the division’s workforce. The consecutive rounds of layoffs indicate the firm’s response to a global slowdown in dealmaking and new equity issuances.
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Canaccord’s management attributed the decision to an evaluation of its business segments in the context of the prevailing and anticipated economic conditions. The company aims to establish an organizational structure that aligns with the current environment.
Canaccord primarily serves small- and mid-cap companies, particularly in the technology, life sciences, and resource sectors. The firm has encountered challenges throughout the year, including failed attempts to go private due to regulatory delays, as well as facing an investigation into its wholesale market-making activities, which might result in a substantial penalty.
The Canadian job cuts follow executive changes within the company, including the departure of the president of Canadian capital markets and the appointment of a new chief executive for Canaccord Genuity Corp. The company also disclosed in a recent filing that board chair David Kassie will step down from his executive management role after the annual general meeting last week and as chair next year.
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Canaccord Genuity last traded at $8.26 on the TSX.
Information for this story was found via Bloomberg, The Globe and Mail, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
