Aug. 22 (Bloomberg) -- Stifel Financial Corp., the brokerage that bought boutique investment bank KBW Inc., said it’s closing its Canadian operations.
The move affects about 70 employees in Toronto and Calgary, according to a person with direct knowledge of the plan, who asked not to be identified because the number of jobs hasn’t been made public.
The firm notified its workers of the closings yesterday, and will begin shutting the offices tomorrow, St. Louis-based Stifel said in a regulatory filing today. The brokerage’s operations in Canada generated 1.2 percent of overall net revenue, or $18.8 million, last year, according to the filing.
A downturn in Canada’s mining and energy industries is pressuring financial firms that reap fees from selling stocks. The number of employees at securities firms in Canada fell in the first quarter to the lowest level since 2006, according to Investment Industry Association of Canada.
Stifel generated $4.19 million in revenue from Canada in three months ended June 30, less than 1 percent of the $498.7 million for the entire company, according to its latest quarterly filing with the Securities and Exchange Commission. The company has been cutting staff after completing its takeover of KBW in February.
Haywood Securities Inc., a Vancouver-based brokerage, cut 20 jobs, or about 7 percent of its workforce, earlier this month amid a slump in natural resources, the company’s president said in an interview.