Fubon Securities to lay off staff ahead of merger

Fubon Securities Co (富邦證券), Taiwan's second-biggest stockbroker by market value, said it plans to fire as many as 400 workers, or a sixth of its staff, as it prepares to merge with other financial-services businesses owned by its parent.

Fubon, which acquired six rival brokers last year, plans to cut its workforce to about 2,000 next month from 2,400 now before being absorbed into a holding company, spokesman Erich Kao said, confirming an earlier report in the state-run Central News Agency.

Fubon Group, which owns Fubon Securities, will set up a holding company by the end of the year to own its broking, insurance and banking operations following deregulation of the financial-services industry. Parliament passed legislation in June ending a ban on cross-ownership and incorporation in these areas.

"Before where it took two or three people to do several tasks, we're now training one staff member to combine tasks such as insurance and banking," Kao said.

Taiwan's unemployment rate rose to a record 4.7 percent in July as manufacturers reduced their production and moved operations to China.

Taiwan's economy shrank 2.4 percent in the second quarter and the government predicts full-year growth will contract for the first time since records began in 1952.

Fubon Securities shares rose NT$0.30, or 1.8 percent, to NT$17.4. The shares have fallen 12 percent in the past year against a 56 percent drop in the benchmark index.