31/08/2001

World’s largest online broker cuts more jobs

Charles Schwab, the world's largest online share broker, is set cut more jobs as falling stock markets continue to depress trading.

The company plans cut up to 2,400 jobs, or 11 per cent of its workforce, in its second round of job losses this year. In March, the company cut 3,400 jobs.

The job cuts follow a 50 per cent slump in trading activity from the beginning of the year.

While brokerages such as Schwab enjoyed booming business during the height of the bull market, the crash in tech shares and the depressed state of markets in the United States and elsewhere means many of these new investors are now shunning equities.

At the start of the year, Schwab employed 26,700 workers, but by the end of this year its workforce will be back to around 20,000, the same number of people it employed in two years ago.

The company said it plans to take a pre-tax charge of $225m to pay for the severance packages. (MB)

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