(Bloomberg) -- Canadian investment bank Canaccord Genuity Group Inc. cut about 25 people in its US capital markets unit in response to a slowdown in dealmaking and new equity issues. 

The layoffs were done in the past 10 days, according to people familiar with the matter, and represent about 6% of the division’s roughly 400 US employees. The move doesn’t affect coverage or leadership, said one of the people, asking not to be named discussing personnel matters. 

Canaccord, which primarily serves small- and mid-cap companies in the technology, life sciences and resource sectors, suffered a 28% drop in US capital markets revenue in the fiscal year ended March 31.

Advisory revenue, the firm’s most important line of US business, fell 21% as higher interest rates and a slowdown in private equity fundraising meant fewer deals for midmarket banks to work on. 

It’s been a tumultuous year for Canaccord. A group of executives led by Chief Executive Officer Dan Daviau and Chairman David Kassie tried to take the company private in a deal that valued it at about C$1.1 billion ($832 million). But the bid expired on June 13 when they determined they couldn’t get timely approval from regulators. 

Canaccord then disclosed that it faces an investigation related to its wholesale market-making activities and may have to pay a “significant penalty” to settle it. 

Read More: Canaccord LBO Plan Falls Apart as Regulatory Probe Drags On

Canaccord reduced bonuses due to the plunge in dealmaking activity and is exploring ways to boost employee stock ownership after the bid to go private failed, Daviau said last month. Compensation expenses declined 25% to C$936.9 million in the most recent fiscal year, according to disclosures accompanying its fourth-quarter results. 

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