City jobs are at risk as Canaccord Genuity blamed “uncertainty looming over the country” for what it said will be “significant” cuts though it wouldn’t say exactly how many roles will go.
Canaccord is big in Canada but a much smaller player in the UK. It bought NatWest Stockbrokers in 2001 and Collins Stewart Hawkpoint in 2012, among many other deals.
Canaccord 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. Its London offices are at the heart of the Square Mile, just off London Wall near Moorgate.
The firm said the job cuts will cost it $12 million (£9 million) this quarter, adding: “A prolonged period of political and market uncertainty in the UK has impacted capital raising and related activities in the region resulting in unacceptable returns.”
A wider shake-up among small City brokers has been on the cards for years, with too many firms chasing too little business.
The business was founded in 1950 and claims to have an “unwavering commitment to building lasting client relationships”.
Dan Daviau, president and chief executive of Canaccord Genuity, said: “The plan we have announced today will allow us to redeploy excess capital from our UK capital markets business.”
He added: “We are hopeful that the capital raising and advisory environment in the UK for small and mid-cap issuers improves for the benefit of all businesses and industry participants.”
