Schwab plans to move jobs out of costly S.F. as business prospers

Charles Schwab Corp. said Friday that daily average trades rose in November as customers brought more assets to the San Francisco brokerage. But the firm also disclosed this week that it plans to move jobs out of San Francisco over the next few years.

In the latest signs of Schwab's success, clients' daily average trades reached 344,400 in November, up 36 percent from a year ago and up 8 percent from October. Net new assets brought to the firm by new and existing clients in November totaled $12.1 billion.

Total client assets stood at $1.446 trillion at the end of November, up 18 percent from a year ago and down 3 percent from October.

Despite the momentum in its operations, Schwab plans to reduce its commercial real estate and jobs in its hometown of San Francisco.

Schwab (NASDAQ: SCHW) plans to eliminate about 30 percent, or 1,400, of its "seats" in San Francisco by allowing more employees to telecommute and by moving work -- and jobs -- to less expensive areas of the country as well as through attrition. Those seats are filled by full- and part-time employees as well as contractors.

The San Francisco brokerage does not anticipate layoffs as it shifts jobs outside the city, where it employs 4,600 people -- making it the company's largest employment center. But further growth in the city where Schwab has been based since its founding in 1974 is apparently off the table, even as its headcount rises nationally.

"We're not looking to grow our presence in San Francisco," said Schwab spokeswoman Sarah Bulgatz.

Instead, the firm is looking to boost jobs at its other major employment centers: Phoenix, Denver, Indianapolis and Richfield, Ohio, outside Cleveland.

"The decision to do this was based on multiple factors that make it more difficult and costly to do business in San Francisco, including commercial real estate costs, the high cost of living and the difficulty in recruiting talent," Bulgatz said.

CEO Charles Schwab did not respond to requests for comment.

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source: bizjournals.com