FXCM will terminate 150 employees after leaving the US. Shares open down more than 50%
Layoffs revealed in 8-K filing
A regulatory filing from FXCM today revealed the company will terminate 150 employees, or 18% of its global workforce as it exits the United States.
"In connection with its withdrawal from business in the United States pursuant to the settlement agreements with the NFA and the CFTC, the Company intends to implement a restructuring plan that includes the termination of approximately 150 employees," the filing said.
The filing also allows Leucadia to terminate bonuses for executives. Presumably, this includes CEO Drew Niv who renegotiated the loan repayment plan with Leucadia last year in a deal that richly rewarded him at the expense of shareholders.
The drop in shares of FXCM has been even worse than indicated in the pre-market. The company is traded at an all-time low of $3.25 per share shortly after the open. It's since rebounded to $4.05, down from $6.85 at the close yesterday.