More jobs to go at CSFBdirect
CSFBdirect, the online brokerage unit of Credit Suisse First Boston, is cutting 180 jobs - or 14 per cent of its workforce - in the United States, due to a slump in customer stock trading.
The cut will contribute to a one-time pre-tax charge of about $16 million (SFr29 million) in the second quarter, and comes on top of a 10 per cent reduction of US staff announced by the firm less than three months ago.
About half of the job losses will be in the group’s technology department.
CSFBdirect is not alone in handing out job losses. Nearly all of its competitors in the US market, including Charles Schwab, Ameritrade Holding and Datek Online have announced significant layoffs.
CSFBdirect has been struggling to gain market share and contain costs amid the industrywide decline in online share trading. The company is due to be folded back into Credit Suisse First Boston in a transaction valuing the company at $4 per share, or $73.6 million.
The job cuts are expected to result in annual cost savings of around $22 million, CSFBdirect said in a statement.
Credit Suisse First Boston is the investment-banking arm of Switzerland’s second largest financial firm the Credit Suisse Group.
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