Schwab To Cut Costs With Friday Furloughs

January 30, 2001 (PLANSPONSOR.COM) - Discount broker Charles Schwab is telling all employees that don't interact with customers to stay home on Friday for the next several weeks.

The move could affect some 15,000 employees, according to published reports.

The affected personnel will primarily be in support areas, and is not expected to affect the call center personnel who interact directly with small investors, the report said. Workers will not be paid for the time off, unless they choose to take the days as vacation time.

The “closings” are slated for February 2, February 16 and March 2, although Schwab branches will remain open.

The moves are part of a series of cost reductions undertaken by the world?s largest discount firm, including cutbacks in executive salaries and furloughs that it announced December 21, 2000.

The moves are intended to reduce costs without leaving the firm short-handed in the event of a rebound in market volumes.