Charles Schwab will lay off 1,800, or approximately 10%, of its workforce as part of ongoing measures to cut back on staff, projects and advertising to save $225 million a year, the firm announced today.
All told, since the beginning of 2001, Schwab has already laid off 7,500 employees [see MFMN 8/19/02].
A Schwab spokesperson did not return a call seeking comment on whether the latest cutbacks will affect employees of Schwabs mutual fund supermarket, OneSource.
The firm issued a statement, however, noting that total trades in August were down 25% from the previous month. Schwabs most recent daily average trading figures for OneSource, for April, show a 17% year-over-year decline.
"Commissions are down very sharply," for the firm, said Sheldon Grodsky, director of research for Grodsky Associates. This includes fees on mutual funds, and "some people have redeemed out of mutual funds altogether," Grodsky said.