Gleacher & Company shut down its equities division.
Calling it “an underperforming, non-core asset,” the boutique investment bank closed the operation on Monday, making redundant 62 traders, analysts and salespeople. As part of the move, Gleacher fired a number of investment banking personnel as well.
In a statement, Gleacher said the move would cut its operating expenses by about $40 million per year. Going forward, the firm will focus on those investment banking activities that are supported by its fixed income platform. That includes mortgage-backed securities.
The cuts will leave the bank with a headcount of 400 employees.
