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Financial Services Company Cantor Fitzgerald Cuts Jobs Amid Coronavirus Pandemic
Financial services firm Cantor Fitzgerald decided to cut jobs amid the coronavirus pandemic. In contrast, other Wall Street firms vowed not to lay off employees.
Bloomberg reported that the company run by Howard Lutnick is planning to cut hundreds of jobs. The report said Lutnick is seeking “to shore up his empire, according to people with knowledge of the matter.”
“We have made prudent headcount and cost reductions to position the firm for the uncertain macroeconomic conditions expected for the remainder of the year,” the company wrote in a statement to Bloomberg.
Cantor Fitzgerald, the private financial services firm, plans to cut hundreds of jobs in a break from other Wall Street firms' pledging not to lay off employees https://t.co/4lCOm8Wk99
— Bloomberg (@business) April 17, 2020
Banks such as Morgan Stanley, Citigroup Inc., and HSBC Holdings Plc vowed to hold off on such dismissals during the pandemic to reassure employees about their income and health insurance. On the other hand, Lutnick worries about the hit from an extended economic downturn, reported Bloomberg.
Cantor Fitzgerald has gone through some challenges in the past. Airliners that struck the World Trade Center during the 9/11 attacks almost destroyed the company – killing 658 of its employees. “The brokerage was rebuilt, making it a Wall Street success story. In late 2016, Lutnick enlisted a new president, Jain, as the firm sought to expand in investment banking and prime brokerage,” said Bloomberg.
According to Cantor’s website, it employs about 12,000 people around the world. The cuts reportedly make up less than 5 percent of the workforce.
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