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Thursday, 22 March, 2001, 14:49 GMT
Charles Schwab cuts staff
Charles Schwab
Online pioneer Charles Schwab cuts jobs
Charles Schwab, the world's biggest online broker, has issued a profit warning and said it will cut between 11% and 13% of its staff to save costs.

Between 2,750 to 3,400 jobs will be cut from the work force of around 26,000.

Schwab said it expects earnings per share of between 6 and 7 cents after charges in the first quarter.

Analysts on average had estimated the company would post earnings of 11 cents per share for the quarter, according to Wall Street research firm First Call/Thomson Financial.

The San Francisco-based company also said it is making provisions for a charge of $70m to $100m in the second quarter.

Not the first warning

In February Charles Schwab said it needed to cut costs amid a downturn in the share-trading market.

The discount brokerage asked half of its 26,000 US staff to stay at home on three Fridays in February and March - either on unpaid leave or on vacation - to avoid job cuts.

Online brokers that trade shares on behalf of private investors have faced hard times as investors who piled into the dot.com stockmarket bubble were burnt and pulled out of the market.

Ameritrade has already cut its workforce by 9% and others are expected to follow.

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Charles Schwab feels the pinch
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