You'd think that on a day he's being featured as a prominent guest at Bush's little dog and pony show Charles Schwab would have put off making layoff and closure announcements. In TEXAS, no less.
Schwab to Lay Off 375, Close Texas Center
SAN FRANCISCO (Reuters) - Discount broker Charles Schwab Corp.(NYSE:SCH - News) on Monday said it will lay off 375 employees, or about 2 percent of its staff, and close its Austin, Texas, customer service center, to slash costs in the prolonged stock market downturn.
San Francisco-based Schwab, the biggest U.S. discount broker, expects to take a $36 million charge in the third quarter, but cut 2003 operating costs by about $26 million. Schwab said it also plans to consider other steps in the next few months to reduce expenses by $200 million a year.
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Schwab, which earlier this month put out a memo forecasting more job cuts from its staff of 19,100, had axed 25 percent of its work force last year in a restructuring. Schwab also shed about 490 jobs in the first half of 2002. Schwab Chief Financial Officer Christopher Dodds last month told Reuters the company would likely end the year with about 18,000 employees.
Shuttering the Austin center would eliminate about 300 jobs. In addition, Schwab said it is cutting about 75 support and administrative jobs at four other client telephone service centers located in Denver, Indianapolis, Orlando and Phoenix.
Over the next 30 to 60 days, Schwab said it executive committee will consider further actions -- including more job cuts and cuts in discretionary spending.
oops
Reminds us of another Charles Schwab, president of Bethlehem Steel, who said in December, 1929:
[N]ever before had American finances been so soundly prepared for prosperity than now.
