Charles Schwab Corp, the No 1 US discount brokerage, is preparing to eliminate an unspecified number of jobs in a bid to cut costs, according to an internal memo obtained by Reuters on Friday.
"As we begin to identify the necessary changes and reset priorities, we have to be realistic that some jobs will be eliminated," Schwab Chief Executive Officer David Pottruck wrote in the e-mail to employees, which was sent on Thursday. "I know this is tough news to hear."
Pottruck said that Schwab had lagged its rivals in key measures of profitability in the first quarter and vowed to review and overhaul everything about the way the brokerage does business in order to compete more effectively.
News of the looming job cuts comes after San Francisco-based Schwab said on Tuesday it would cut commissions for stock trades in a bid to attract new customers and generate more turnover.