(Bloomberg) -- Evercore Inc. plans to cut about 6% of its workforce in the first quarter and is weighing an overhaul of operations in certain smaller markets.
Costs related to the cuts will be $38 million, $2.9 million of which was recorded in a special expense last year, the New York-based M&A advisory firm said Wednesday in a statement. Evercore had 1,900 employees at the end of September, so a 6% cut would affect more than 100 workers.
“We have undertaken an initiative to ensure that our resources are focused on our greatest growth opportunities,” Chief Executive Officer Ralph Schlosstein said on a conference call discussing earnings. “We began this initiative at the end of 2019 by identifying markets, sectors, and people that exhibited productivity below our expectations.”
Fourth-quarter profit was $2.72 a share, beating the $2.36 average estimate of eight analysts in a Bloomberg survey. Shares rose as much as 14%, the most intraday since October 2011.
“While our brand and market position have never been stronger, our revenues were down 2%, which, while better than many of our larger competitors was nonetheless disappointing to us,” Schlosstein said on the call.
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