GMPXF RF Capital Group Inc (PK)

GMP Capital Inc., one of Canada's largest independent brokerage firms, plans to cut jobs, shutter its U.K. and Australian operations, and suspend its dividend to help weather industry headwinds caused in part by slumping commodity prices.

Toronto-based GMP, Canada's second-biggest independent broker after Canaccord Genuity Group Inc., said Wednesday that the restructuring allows it to focus on its core North American operations, which accounted for 93% of its total revenue last year.

Among the changes, GMP said it would close offices in London, Perth and Sydney and streamline its sales, trading and research operations in Canada. The company plans to cut 97 jobs, representing a 25% reduction from third-quarter levels.

GMP said it would record a fourth-quarter charge of about 15 million Canadian dollars ($10.5 million) and expects the moves to result in a reduction in annual expenses of more than C$40 million.

GMP and its peers, which provide services to Canada's resource industry, have faced falling revenue and profits as commodity prices continue to decline. In its third quarter, GMP posted a loss and reported a 20% decline in revenue due to lower capital-markets activity as a result of weak economic growth and low commodity prices. Rival Canaccord also swung to a loss on lower revenue in its latest quarter.

"We emerge from this restructuring a leaner and more focused business better able to weather prolonged periods of market and industry turbulence," GMP Chief Executive Harris Fricker said in a release.

Ben Dummett contributed to this article.

Write to Judy McKinnon at judy.mckinnon@wsj.com

(END) Dow Jones Newswires

January 13, 2016 11:05 ET (16:05 GMT)

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