INTER-DEALER broker Tullett Prebon yesterday said it would cut a further 80 jobs as it announced that profits had dropped for a second consecutive year.
Terry Smith, chief executive, said the group needed to “reduce costs and maintain flexibility in the cost business” and warned the firm faced higher costs from developing new electronic platforms and dealing with new regulation.
The news comes just two months after it announced that 80 traders in New York and London would lose their jobs.
Pre-tax profits for 2011 were £119.2m, a drop of 15 per cent, while revenue remained flat at £910m.
To make matters worse, ratings agency Moody’s has downgraded the firm’s outlook from stable to negative, citing a challenging operating environment due to “the deteriorating creditworthiness of many of Tullett’s traditional customers” and “the potential decline in Tullett’s broking revenues”.