The Financial consultant firm Canaccord is reducing the number of offices it has in Canada by 16 and reducing the number of advisers available to financial clients at all of its Canadian locations.
The regrouping will see a focus on large urban areas and represents a downsizing of 50 percent in offices throughout the country, according to a Montreal Gazette report.
The company will write off about $11.5 million in severance pay and office closures in its second quarter fiscal report.
Canaccord, which is based in Vancouver but announced the downsizing from Toronto, will retain 180 investment advisory teams; however the company would not say how many employees that involves.
"This initiative will allow us to make additional investments in markets where we see the most opportunity for future growth," John Rothwell, president of Canaccord Wealth Management (Canada), said in the announcement.
Canaccord recorded a net loss of $20.6 million in its first fiscal quarter for 2013, which ended in June of this year,
The gross loss equaled 24 cents per common share and represents an adjusted net loss of $16.3 million, or 20 cents per common share.
"We can better cater to the needs of our clients through an elite team of Investment Advisors who have demonstrated their abilities to generate meaningful value for our clients, foster long-term client relationships and an enhanced client experience," said Rothwell, putting the best possible face on the corporate downsizing.
In what could mean more instability for current employees, Canaccord also announced on Monday that it has agreed to a takeover of a U.K. company, if the deal is approved.
If all goes well, Cannaccord will acquire Collins Stewart Wealth Management which may lead to further restructuring and another $5.2 million charge off in the third quarter.