Schwab to cut 2000 jobs
Charles Schwab has announced a second round of job cuts in the US this year, with the axe planned to fall on more than 2000 jobs, or at least 9 per cent.
Only in March this year the company made a similar grim announcement when it decided to cull a 15 per cent slab of its US based workforce, or 3400.
Trading volume in the US online share trader has slowed by 12 per cent in the second quarter this year.
“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,”Charles Schwab chairman and founder, Charles Schwab was quoted as saying in London’s Financial Times.
However, analysts have remained upbeat about Schwab in the longer term, and have attributed its larger size and diversity as an advantage over competitors E*Trade and Ameritrade.
Last time the online trading company announced its job cuts, its Australian office was asked to identify excesses in staff numbers, of its then 130 combined staff members in offices in Sydney, Melbourne, Brisbane and Perth. However, there has been no similar announcement following that of its parent company, and a spokesperson for Charles Schwab in Australia could not be contacted for comment.
The latest announcement of job cuts follows a spate of similar cuts from early this year from other global quarters in financial services. In April, both TD Waterhouse and Morgan Stanley each announced they would cut their staff by 1500.
AUTHOR
Lachlan Gilbert
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