A top executive at a publicly traded brokerage confirms that layoffs are coming. Yet it's not clear how the cuts will affect the firm's $360-billion-AUM
asset management arm.
| Peter B. Crawford|
Charles Schwab Corporation
Executive Vice President, Chief Financial Officer
The Charles Schwab Corporation
team will eliminate about 600 positions, which translates into about three percent of the company's total workforce, chief financial officer Peter Crawford confirmed
on Monday in the company's Monthly Activity Report
for August 2019. Crawford's statement confirms a WSJ report
from last week. (The WSJ
blamed the cuts on falling interest rates, given that Schwab's bank now accounts for more than 50 percent of the company's revenue.)
| Jonathan Christian de St. Paer|
Charles Schwab Investment Management, Inc.
"Impacted positions span all staffing grades, as well as organizations and locations across the company," Crawford stated in the Monthly Activity Report.
Yet Crawford did not hint as to which Schwab units will be affected. Erin Montgomery, a Schwab spokeswoman, declined to comment on many of the cuts will come from Schwab's asset management unit, Charles Schwab Investment Management
], which is now led
by Jonathan de St. Paer
"We are currently reviewing our expense base, given the economic environment, and as part of that some 600 jobs will be eliminated," Montgomery tells MFWire
via email. "It would be inappropriate to comment any further at this time."
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