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CSFBdirect cuts 180 jobs
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May 31, 2001: 10:21 a.m. ET
Work force shaved by 14% due to lower trading volume; $16M charge expected
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NEW YORK (CNNfn) - CSFBdirect, the online brokerage unit of Credit Suisse First Boston, is cutting about 14 percent of its staff and taking a one-time charge due to a fall in trading activity.
The company said that about 180 positions will be eliminated in its Jersey City and East Brunswick, N.J., offices as well as its Charlotte, N.C., offices. The company said it also will cut back its office space in Charlotte and Jersey City.
The charge in the current period should come to about $16 million, of which $7 million is associated with the previously announced sublease of space in Jersey City. It said the moves should save about $22 million a year. The company posted a first quarter loss of $14.1 million, or 14 cents a share, which was significantly less than forecast but contrasted to a profit in the year earlier period.
The move is just the latest job cut by Wall Street brokers who face declining stock prices and trading. Last week Goldman Sachs Group Inc. (GS: down $0.05 to $94.71, Research, Estimates) announced 150 job cuts as part of a plan to trim its work force by 5 percent.
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Morgan Stanley (MWD: up $0.40 to $64.60, Research, Estimates), Charles Schwab Corp. (SCH: up $0.10 to $18.75, Research, Estimates), Merrill Lynch & Co. (MER: up $0.10 to $64.37, Research, Estimates) and Citigroup Inc. (C: up $0.09 to $50.87, Research, Estimates) all have announced staff cuts as well.
Shares of the tracking stock of CSFBdirect (DIR: down $0.09 to $4.92, Research, Estimates) were down slightly Thursday morning. 
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