Instinet keeps cutting; Electronic stock exchange will slash 12% of work force

Discussion in 'Order Execution' started by trader99, Mar 28, 2003.

  1. trader99


    Instinet keeps cutting
    Electronic stock exchange will slash 12% of work force
    By David Weidner,
    Last Update: 4:53 PM ET March 28, 2003

    NEW YORK (CBS.MW) -- Instinet Group said late Friday that it plans to lay off 175 workers, about 12 percent of its work force.

    The move is part of cost-cutting expected to bring $20 million in savings annually. Chief executive Edward J. Nicoll said the savings would be in addition to $100 million in cost cuts already announced.

    Instinet (INET: news, chart, profile) has suffered from trading declines in equity markets. In September it completed a $508 million in stock acquisition of the Island ECN, an electronic brokerage service.

    The cuts follow some 300 job cuts made last year after Instinet said slower trading contributed to lower revenue. The company took a $58 million charge related to the cuts in the fourth quarter.

    In February, Instinet reported a bigger-than-expected fourth-quarter loss of $10 million.

    Instinet is majority owned by Reuters Group (RTRSY: news, chart, profile).

    Shares of the company closed up 2 cents or 0.6 percent to $3.54. The announcement was made after the market close.

    David Weidner covers Wall Street for CBS