On top of the 9,000 it has already laid off and the 23 branches it has already shut down since 2001, Charles Schwab will lay off another 250 people and close 20 branches, The New York Times reports. This will result in charges of $35 million to $50 million in the second half of the year.
In the first quarter of the year, Schwab reported a 22% decline in trading volume and a 24% drop in profits to $71 million, the firms weakest quarter in four years. But in the second quarter, Schwabs profits rose 29% from the year earlier, to $126 million.
In announcing the first quarter results, Schwab CEO David S. Pottruck said he could not be sure if the recent rally would continue through the rest of the year and that Schwab would continue to reduce expenses.
In a regulatory filing this week, Schwab said it will continue "to evaluate its work force and facilities requirements in response to the market environment."