Charles Schwab, a San Francisco-based brokerage giant, has announced its plan to reduce its workforce and real estate footprint as part of cost-cutting measures aimed at streamlining operations. These moves are directly related to the integration of TD Ameritrade, which Schwab acquired in 2020.
The company intends to close or downsize some of its corporate offices and aims to lower its operating costs primarily through reducing headcount and professional services. Although Schwab has not specified the number of jobs that will be impacted, they expect to eliminate positions mainly in non-client facing areas.
According to the Securities and Exchange Commission filing, Schwab anticipates saving at least $500 million per year through these measures. However, they also expect to incur costs related to employee compensation benefits and facility exits.
The company stated that these actions are part of a broader strategy aimed at removing cost and complexity from the firm, streamlining their operational model, and improving overall efficiency.
It is anticipated that the layoffs will take place before the end of this year, while the real estate exit costs will extend into 2024.
– Charles Schwab Securities and Exchange Commission filing