CSFBdirect to Slash 14 Percent of Staff
The company, which is the online brokerage unit of investment bank Credit Suisse First Boston, attributed the reduction to a slump in customer stock trading. The staff cuts will occur in the Jersey City headquarters and a Charlotte, NC, facility. Roughly half of the staff cuts will be in technology positions.
The cuts will contribute to a one-time pretax charge of approximately $16 million in the second quarter of this year, and follow a 10 percent employee reduction announced by the company about three months ago.
Analysts expect that the online brokerage will be eventually folded back into its parent company in a transaction valuing the company about $4 per share, or $73.6 million.
The layoffs follow similar moves made by other large competitors including Charles Schwab Corp., Ameritrade Holding Corp. and Datek Online Holdings Corp.
CSFBdirect shares were down approximately 2.2 percent to $4.90 at the close of trading yesterday on the New York Stock Exchange.