Prudential to close small-stock division
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Prudential Financial Inc. said Wednesday that it would close its small-stock research and sales business, which had been described by some analysts as “a distraction” with little value.
The Newark, N.J.-based company said shutting its Prudential Equity Group would result in the elimination of 420 jobs at 13 locations worldwide.
“We don’t have the scale to compete,” company spokeswoman Mary Flowers said, adding that the parent company was focused on “businesses where we can be a top-tier player.”
Some Wall Street analysts have said the unit didn’t fit into Prudential Financial’s overall business model.
“The unit really hasn’t been making any money for the last few years, and if you can’t make money in the favorable equity market of the last few years, then you really should question whether you should be in that business,” said analyst Jeffrey Schuman of Keefe, Bruyette & Woods Inc.
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