Charles Schwab is cutting jobs and plans to close or downsize its offices, the brokerage firm said in a Monday regulatory filing.
The purpose of the cuts is to achieve at least $500 million in annual cost savings, and comes in response to investor pressure, according to Bloomberg. The company will close and/or cut down on major real estate, and reduce its employee numbers.
“We have said, we intend to take a series of actions this year and into 2024 aimed at removing cost and complexity from the firm, including reducing our expense base and streamlining our operating model,” Charles Schwab spokesperson Mayura Hooper told the outlet in a statement. “This will result in eliminating some positions in the coming months, mostly in non-client facing areas. We don’t yet have specifics to offer on how many positions will be eliminated.”
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The company said in August that it was experiencing a lower net flow of client money while seeing attrition of retail and advisory clients’ assets, Bloomberg continued. (RELATED: World’s Largest Hedge Fund CIO Issues Terrifying Warning For US Economy)
The decision was “directly related to the integration of TD Ameritrade,” Fox Business reported. Schwab acquired the financial services company in 2020. The cuts to jobs are expected to be completed by the end of 2023, while real estate cuts will last into 2024, per the outlet.