SAN FRANCISCO (AP) – Discount broker Charles Schwab Corp. dumped its CEO on Tuesday and replaced him with founder Charles Schwab, hoping the man who created the company can rejuvenate the business.

The San Francisco-based company made the surprise announcement as it released its second-quarter results – a 10 percent drop in profits for the three months ended June, reversing a recent streak of improved earnings.

“The last few years have been difficult in the securities markets, and I accept the board’s decision that it’s time for me to step aside,” the departing CEO David Pottruck said in a prepared statement.

No other management changes are planned at Schwab, said Christopher Dodds, the company’s chief financial officer, during a conference call with analysts and media.

Like other brokers, Schwab’s fortunes have fluctuated with the ups and downs of the stock market.

Schwab also has been facing tougher competition from rivals such as E-Trade Financial Corp. and Ameritrade Holding Corp., which have been luring away customers by offering lowering commissions.

Pottruck’s departure comes 14 months after the company appointed him its sole CEO. He had shared the CEO job the previous five years with Schwab.

Besides taking over as CEO, Schwab, 66, will also continue in his position as chairman.

The company is expected to shed more employees, resuming a purge that has cut about 10,000 jobs since the company’s payroll peaked at 26,300 workers 31/2 years ago. Schwab recently cut another 275 jobs, primarily by closing a customer service center in Orlando, Fla., and plans to jettison even more positions during the next five months, Dodds said Tuesday.

The company still hasn’t determined how many jobs will have to be eliminated to realize management’s goal to reduce annual expenses by $150 million to $200 million.

AP-ES-07-20-04 1726EDT