Charles Schwab Europe is to cut its UK workforce by 20 per cent in response to declining stock market volumes and "fundamental changes" in the trading patterns of UK private investors.
The retrenchment will entail the loss of up to 180 jobs, reducing the UK headcount from its current total of 850 people. The cuts go deeper than in the US, where the brokerage recently announced plans to lose 3400 jobs, or 13% of the workforce.
Russ Shaw, senior vice president at Charles Schwab Europe, says: "These are very difficult decisions to make and everyone at Charles Schwab has worked hard to avoid the need for job cuts in the UK, but now we must respond to the continued stock market down turn and fundamental changes in the trading behaviour of British private investors."
He says the plans will be discussed with employees over the next two weeks and believes most of the reductions can be achieved through voluntary redundancy and natural wasteage.
The FT reports that Barclays Stockbroker is also planning cutbacks as private investors pull back from volatile markets. The newspaper says the UK broker wants to trim at least five per cent from its 1800-strong workforce.