According to a Reuters report, KCG Holdings Inc. (NYSE:KCG) Inc has announced that it started to cut 4% of its workforce, aiming to refocus on growth areas of its business. The company also stated that it will incur a pretax charge totaling between $5 and $6 million this quarter, for severance pay and termination benefits entitled by some of the employees who were let go.
The move comes only a couple of weeks after KCG Holdings’ Chief Financial Officer, (CFO) Steven Bisgay was reported to have left the company abruptly. The company has been hemorrhaging talent in the past few weeks with a couple of other former Knight executives leaving KCG Holdings Inc.(NYSE:KCG) in September.
The company also announced that it will be disposing of its Futures Commission Merchant (FCM) business, selling it to Wedbush Securities for an undisclosed sum.
The company was left by the Head of Corporate Strategy, Richard Herr and Deputy General Council, Andy Greenstein just around the time of departure of Managing Director and Head of Sales at KCG Hotspot, John Miesner, who left the foreign exchange arm at KCG after 14 years.
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Earlier this month, a Wall Street Journal report published excerpts from a letter exposing some internal communication at KCG Holdings Inc. (NYSE:KCG). According to the leak, some tense communication has been ongoing, related to the poor performance by GETCO’s trading operations.
The company’s Chief Executive Officer (CEO), Daniel Coleman who hails from GETCO has also been criticized for mismanaging the company after the merger which concluded last year.
The internal rebellion appears to have been put to and end with the latest announcement by the company, but serious damage might have already been done. Shares of the firm are trading close to the April low from earlier this year, despite market volatility returning to pretty much all major asset classes in which the firm operates its business.
Forex Magnates’ reporters attempted to contact the company’s spokesperson for a comment but haven’t got a response at the time of publication.