Schwab, CSFBdirect to cut jobs

By Maria Trombly

March 15, 2001 12:00 PM ET

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Computerworld - In another sign that times are tough for online brokerages, Charles Schwab & Co. and CSFBdirect Inc., the Jersey City, N.J.-based online trading unit of New York-based Credit Suisse First Boston, said this week that they would cut staff to reduce costs.

"Last month, the securities markets were once again buffeted by signs of weakening corporate earnings and economic growth," said Schwab President and co-CEO David Pottruck in a statement today. The statement noted that daily average trades for February were down 31% from the same time last year.

San Francisco-based Schwab had already cut staffing by 850 people through a hiring freeze to 25,000 in mid-February, but that wasn't enough.

"Given our business outlook, we are assessing the appropriate level of staffing, facilities and systems capacity reductions in each of our client and support enterprises," Pottruck said.

Meanwhile, CSFBdirect announced yesterday that the company would close its call center in Parsippany, N.J., and consolidate customer service at its three other locations.

The closing of the center, as well as reductions at other locations, brings total cuts to 150, or 10% of CSFBdirect's current U.S. workforce. The company said it expects to save $11 million annually as a result of the cutbacks.

Related stories:

Online securities marketplace OffRoad Capital cuts staff by 30%, Feb. 13, 2001

Brokerage joins movement away from Net pure-plays , Feb. 12, 2001

Ameritrade, J.P. Morgan to cut workers, Jan. 8, 2001

Read more about financial in Computerworld's Financial Knowledge Center.

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