From Queen, one of the greatest rock’n’roll bands ever!
Now, what brings that song to mind? From the Dallas Business Journal:
Charles Schwab sending San Francisco jobs to Texas, elsewhere
By Lance Murray, Digital Content Producer-Dallas Business Journal | Feb 4, 2014, 6:36am CST UPDATED: Feb 4, 2014, 11:31am CST
[wikichart align=”right” ticker=”SCHW” showannotations=”true” livequote=”true” rollingdate=”1 year” width=”300″ height=”245″]Charles Schwab will move a “significant number of San Francisco-based jobs” to Texas and other locations in the next three to five years, the company has told employees in San Francisco.
The San Francisco Business Times reported that the move isn’t sitting well with its California employees, who were told in December that they might have to pull of stakes and resettle to Texas and points east.
“Additionally, as has been our practice for the last number of years, future firm expansion will be concentrated in these centers,” said Schwab spokesman Greg Gable told the Business Times. Schwab wouldn’t say how many jobs would be leaving San Francisco.
“We expect to maintain a significant presence of employees here at headquarters,” Gable told the Business Times.
Gable did confirm that Texas was one of the prime spots for relocation.
More at the link. Governor Rick Perry (R-TX) tweeted:
Looks like more California jobs coming to Texas. http://t.co/EazqTFduMp
— Rick Perry (@GovernorPerry) February 4, 2014
I suppose that the title, Another One Bites the Dust, is a bit unfair, in that Charles Schwab isn’t leaving the Pyrite State entirely, but, once again, the handwriting is on the computer screen: the company is downsizing its presence in the high tax, business unfriendly state of California — not to mention the city of San Francisco — and moving some of its operations to places which are more business friendly, as well as having lower taxes.1
Moving isn’t free; to move some of its operations out of California has costs, both financial and human. Some employees will take the transfers offered, and Schwab will wind up paying some of their moving expenses. Others will be unable to make the move, and lose their jobs, and that entails unemployment compensation costs for the company, as well as whatever severance payments are made. Schwab will lose people it would prefer to retain. Decisions like this are not taken lightly, nor are they simple whims; a company like Schwab will have had analysts — and they have plenty of those — looking at the proposed moves and providing cost/benefit analyses. Schwab will probably be politically correct, and not offer those results to the public, but the answers are obvious: the corporate leadership believe that it will be better and more profitable for the company to make these moves than to stay in California.
- Editorial disclosure: your Editor does not own stock in Charles Schwab, nor is Schwab his broker. ↩