Jefferies Said to Cut 17 on Equities Desk After Revenue Drop

  • Revenue decline tied to mark-to-market losses, bank has said
  • Equities job cuts said to be part of a periodic culling

Jefferies Group eliminated 17 positions on its equities trading desk this week after revenue fell in the first quarter, people with knowledge of the matter said.

Martin Smith, a managing director, was among the traders and salesmen whose jobs were cut, said the people, who asked not to be identified discussing personnel decisions. The positions, which represent about 2 percent of total equities division jobs, were part of a periodic culling, said one of the people.

Jefferies’s first-quarter revenue from equities trading tumbled 99 percent from a year earlier to $1.75 million. The New York-based investment bank blamed most of the decline on mark-to-market losses on two holdings, according to a March statement.

Smith declined to comment, as did a spokesman for Jefferies, which is owned by Leucadia National Corp.

Smith, an equities salesman, has been at Jefferies since February 2013, according to Financial Industry Regulatory Authority records. He previously worked at Morgan Stanley, the records show.

Jefferies is expected to report fiscal second-quarter results next month.

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