Defunct trading company MF Global Inc. says it is terminating its entire workforce of 1,066 employees.
The company said Friday it is dismissing workers in accordance with a bankruptcy court-mandated liquidation. Between 150 and 200 former employees are being hired to assist with the liquidation and court proceedings.
MF Global declared bankruptcy after losing money on a number of bad bets on derivatives contracts, precipitated by the European financial crisis.
The company did not immediately return a call seeking comment. It said in a statement that all the employees were notified of their termination Friday.
The company said it is working to vacate its headquarters in New York as soon as possible and will close the offices.
It wasn’t immediately clear how MF Global’s Canadian operations were affected, and calls to both the company’s Toronto and Montreal offices were not answered on Friday afternoon.
Last week, the Investment Industry Regulatory Organization of Canada said a bankruptcy order had been obtained for MF Global Canada Co.
KPMG Inc. has been appointed trustee in bankruptcy and will work in consultation with the Canadian Investor Protection Fund and others to verify all customer accounts and to determine the financial position of the firm.