City Broker Tullett Prebon plans to cut eighty jobs as the result of rising staff costs and a changing market.
Two months ago, the broker cut 80 jobs for the same reason and announced this week that it would have to do another round of cuts that will be focused on back-office jobs in America, Europe and Asia.
Terry Smith is the chief executive of Tullett Prebon and he has said that the broker has taken actions to build its flexibility and reduce costs, but as business costs continue to increase with regulatory changes and electronic platform developments they have no other choice but to cut back again.
The broker saw a drop in profits last year and reported flat revenues for last year with the firm blaming high costs that come associated with broker pay. The company stated that the high pay costs are a result of the challenging market and that there have been a lot of costs tied into attempting to rebuild their brokerage firm in America.
When mid-session trading was reported, Tullett’s shares were three percent lower after the company already reported a flat share price for 2010. Final profit before tax was also lower in 2011, coming in at £136m instead of £149m in 2010.
Smith noted that there is not much hope that the market will become any easier in the coming months, but that due to the volatility of the market there will be some periods of heightened activity throughout 2012, and there will be some periods of low activity.
Tullett is not the only company to reduce its costs by cutting staff members, as last month Icap reported that it also was reacting to the turmoil of the eurozone crisis and the unclear economic outlook across the globe.