More jobs lost as Schwab shuts down systems

More jobs lost as Schwab shuts down systems

The Charles Schwab Corporation is to cut more jobs and shut down redundant computer systems in the face of deteriorating market conditions.

The company says it will shed 10% of its workforce, or up to 2400 jobs, by the end of October. This includes mandatory staff reductions totaling 1600 to 1900 full-time employees and approximately 200 contractors. Schwab also expects to lose an additional 300 jobs through natural wastage during the remainder of the year.

The cuts, in combination with the reductions made prior to July 31, are expected to result in a year-end staffing level that is nearly 25% below the beginning of 2001.

The restructuring also entails the removal of certain systems hardware from service. In total, the company is looking for savings of $65 million per quarter, beginning in the first quarter of 2002.

Chairman and co-CEO Charles Schwab says clients are trading at only half the levels of a year ealier. "Given the severity of the pullback in client activity and our outlook regarding the potential duration of this environment, we are taking further measures to improve our financial performance while maintaining appropriate capacity," he says.

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