Charles Schwab Corp. said it’s rushing to get more employees working from home, conceding its systems weren’t built to withstand the stresses on the business that the coronavirus outbreak has caused.
In a memo to employees on Tuesday, Nigel Murtagh, executive vice president of corporate risk, said more than 7,000 of the firm’s 20,000 employees are working from home and the company is trying to accommodate even more. Separately, the company said Wednesday it’s temporarily closing its Bay Area branches to the public and may do so for its retail branches.
“Even with our plans in place, this crisis has brought forth some unpredictable issues that we are working to address now,” Murtagh wrote. “Like many companies, we simply did not build into our plan the need to have the majority of employees work from home at the same time. So we are in the process of building out that capability now, as quickly as possible.”
Corporations across the globe have instituted plans to keep their businesses up and running during the pandemic. Schwab is addressing the issue as San Francisco, where it’s based, orders people to stay home except for essential needs -- one of the strongest local efforts to contain the virus in the U.S.
“Starting tomorrow, all employees who have the ability to work remotely may do so,” Schwab spokeswoman Mayura Hooper said in an email Wednesday. “There are certain critical functions that will need to be performed on site -- like any large financial institution. This includes some roles in network operations, cybersecurity, trading, call centers, and other areas.”
Employees required to report to offices will be expected to follow recommended health guidelines and enhanced social distancing practices, she said. As for its plan for branches, those in the Bay Area will be closed to the public through April 7. The company had 360 offices in 48 states as of Dec. 31.
Schwab, which oversaw $3.86 trillion as of Feb. 29 from multiple locations around the country, experienced record volume of client trades last month, according to a March 13 memo from Chief Financial Officer Peter Crawford.
This article originally appeared in Bloomberg.
