MENLO PARK -- E*TRADE Group, Inc. (NYSE: ET) will move its ATM subsidiary, E*TRADE Access, from Portland, Ore. to E*TRADE Bank's Operating Center in Arlington, Va. as part of a cost-cutting plan to consolidate certain facilities and streamline operations during the next several months.
The company says its consolidation efforts will lead to a facility restructuring and other non-recurring charge this quarter of $220 million to $245 million while generating a recurring annual pretax benefit of approximately $60 million to $70 million.
E*TRADE has made 16 acquisitions in the past three years, including the former Card Capture Services in March of 2000. Since the acquisition, E*TRADE Access has added another 2,000 ATMs to its network for a total of approximately 10,500 machines. In April, E*TRADE Access became the exclusive ATM provider for Target stores.
"We continue to make tremendous strides to drive operational efficiency by streamlining our organization and implementing a new global organizational structure to ensure a more regional focus and deeper level of expertise across all lines of business," said Christos M. Cotsakos, E*TRADE Group's chairman of the board and chief executive officer. "Our latest move in context with our overall diversification strategy will enable E*TRADE in this challenging macroeconomic environment to look at different business opportunities and/or combinations while continuing to improve the company's profit outlook going forward."
Also as part of the consolidation efforts, E*TRADE will move operations from its San Francisco facility into existing facilities in Menlo Park and Rancho Cordova, as well as the soon-to-be-opened E*TRADE Center in San Francisco.
E*TRADE will also consolidate facilities in the UK and the Nordic countries.
