Schwab cutting tech jobs (400 - 600 more jobs)

[UpInArms]

http://cbs.marketwatch.com/news/story.asp?guid=%7B1C7F5BF9%2D8595%2D48A0%2DB482%2D993FFCC64047%7D&siteid=mktw

SAN FRANCISCO (CBS.MW) -- Charles Schwab (SCH: news, chart, profile) is cutting jobs at its STech technology division as part of a reorganization announced earlier this year, its spokeswoman said Monday.

The discount broker has embarked on a plan to reduce annual expenses by $175 million to $225 million. While the first part of that plan involved 500 layoffs, the firm intends to reduce staff by a further 400 to 600 by the end of the year.

The STech reductions are part of the 400 to 600 job cuts, added Schwab spokeswoman Sarah Bulgatz, who declined to give more details.

Schwab, which ousted Chief Executive David Pottruck in July, has been losing out to discount rivals such as E-Trade (ET: news, chart, profile) and full-service brokers including Merrill Lynch (MER: news, chart, profile), according to analysts.

...more...

[mhr]

1. TERROR ALERT - Bush Economy Fails To Produce New Jobs

Middle Class America Devastated - Details At 11:00

[HereSince1628]

6. Are the brokers middle class?

I am just wondering because $175,000,000 divided by an expected job loss of a 1000 would suggest salaries/benefits & overhead of $175,000 per person.

Of course there may be other costs that will be reduced by cutting 1000 positions that I am not seeing things like maybe overhead on office space, and perquisites etc...

[mhr]

7. Overhead Is Usually 30 to 40 % For Each Salaried Employee

So 175,000 divided by 1.4 = 125,000

That's not an extravagant salary in the equities world or for a high cost of living area.

[hadrons]

2. Charles "Chuck" Schwab is a huge Bush ass-kisser

you can see how much its helped him and his (former) employees

[Lerkfish]

3. oh, I'm sure his golden parachute is intact, thankyewverymuch...

;)

[mbperrin]

4. Woo-hoo! Look at that * job machine go!!

There go more jobs!!

[VegasWolf]

5. "Layoffs, Layoffs, as far as the eye can see, and nary a job fo me!!"

[Supersedeas]

8. Enlist today for the New Bush War reedumacation job fair for the poor

You and 400-600 freshly laid-off potential recruits

[VegasWolf]

9. I tried, but I have too much education to be a Walmart greeter!