Bank of New York subsidiary G-Trade Services could reduce its Bermuda operations to just 12 people from 47 over the next few months in a consolidation move. A majority of the jobs that could be lost are held by Bermudians. G-Trade does not expect that staffers will be transferred to its other offices in New York, Orlando and London.

The BSX member company expects the restructuring to take place over the next few months. Bank of New York spokesperson Kevin Heine said: ?We will be maintaining a presence in Bermuda. The reason for the move has nothing to do with the performance of the staff or a reflection of the performance of the group.?

BNY does not anticipate that the affected staff will be able to transfer to their three locations and although some potential exceptions may be considered.

Mr. Heine said it would be premature to make any decisions on staff transfers and the exact number of affected staff is to be determined.

?The company is under constant pressure to manage its cost base lower particularly in the trading of securities and this move will allow us to consolidate our operations in three existing locations, while maintaining a smaller but important presence in Bermuda,? Mr. Heine explained.

?We are dealing with competitive dynamics and market realities and the Bank of New York is making a prudent business decision to carefully manage its expenses.?

Mr. Heine said G-Trade was in a continuous mode of competition and providers in the securities business must manage their costs to stay competitive.

G-Trade opened its office in Bermuda in late in 1999 as a leading provider of agency brokerage services specialising in electronic direct access for non-US dollar equity execution.

?An announcement was made to staff at G-Trade earlier this week. I am sure they are disappointed but we are working as hard as possible to minimise the impact and a generous severance package will be provided and will include outplacement counselling.?

One unidentified G-Trade employee admitted: ?Some people are upset.?