The trustee for MF Global, the broker-dealer unit of the collapsed New York-based parent, said Friday that its 1,066 employees will be cut as part of that unit's liquidation.
The trustee said most of the 1,066 employees’ last day would be Nov. 15, but between 150 and 200 workers would be kept on to wind down the broker business and process bankruptcy claims.
While the cuts are limited to just the broker unit, that subsidiary is parent company MF Global Holdings’ largest business. The trustee took control of that unit to liquidate it shortly after the company filed for bankruptcy Oct. 31.
MF Global Holdings had a headcount of 2,847 as of March 31.
MF Global’s only subsidiary other than the broker unit listed in its Chapter 11 bankruptcy filing is its MF Global Finance USA, which is a clearing member firm of futures exchange CME Group Inc. It’s not clear how many employees work for this unit, but they are not part of the broker's liquidation.
The trustee was appointed after a shortfall in customer accounts was discovered, leading regulators to call in the Securities Investor Protection Corp., which tapped James Giddens as the trustee.
Lynne Marek is senior reporter at Crain’s Chicago Business, a sister publication of Pensions & Investments.