Charles Schwab will lay off 1,800, or approximately 10% of its current 18,000 workforce, as part of ongoing measures to save $225 million a year, the firm announced. This latest round of cuts comes on top of the elimination of 7,500 staff since the beginning of last year [see MFMN 8/19/02].
As to whether the layoffs will affect Schwab's mutual fund supermarket, OneSource, a Schwab spokesman said that has not yet been determined.
Schwab's most recent daily average trading figures for OneSource show a 17% year-over-year decline.
Mutual fund fees "are down very sharply," for the firm, said Sheldon Grodsky, director of research for Grodsky Associates, an analyst who follows the firm.