MF Global Holdings Ltd. will lay off the remaining employees in one of its units, according to a notice filed with the New York State Department of Labor yesterday. Terminations of those employees have already been taking place, a source with direct knowledge of the matter said.
As previously reported by FINS , the layoffs are widespread across finance, IT, human resources and other back-office staff. Some 165 employees have already been let go from the 250-strong unit.
Fewer than 40 people are currently working in the MF Global unit affected, a source familiar with the situation said, and while the Labor Department notice says all of the employees will be fired by December 31, 2011, the source doesn't think that will be the case.
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"There's no possible way everyone could be done on the 31st," the source said. "Some people will have to stay on to help retrieve assets for creditors."
The source said Judge Louis Freeh, the newly-appointed trustee winding down MF Global's parent company, may choose to keep some staff, just as James Giddens, MF Global's broker-dealer trustee, did. Giddens rehired 190 former employees to help liquidate that unit.
A spokesperson for Freeh didn't return a request for comment before publication.
Several former MF Global employees have filed lawsuits against the company alleging it failed to provide 60 days notice of layoffs as required under federal law, and under state law, which mandates companies give 90 days notice.
MF Global Holdings Ltd. declared bankruptcy Oct. 31 under Chapter 11 of the U.S. Bankruptcy Code.
Write to Julie Steinberg at Julie.Steinberg@dowjones.com