Charles Schwab Plans Laying Off Undisclosed Number of Employees in Order to Cut Costs

Charles Schwab Corp (NYSE:SCHW) has joined the league of big firms to start laying off some employees and also shut down some of its working offices to cut costs.

The economic impact is affecting big firms globally and Charles Schwab is not the first nor will it be the last in the downsizing of workforce trends.

This development was reported by the San Francisco-based brokerage giant to the Securities and Exchange Commission in a filing which is claimed is "directly related to the integration of TD Ameritrade."

X User Reports,

Charles Schwab filings to SEC partly reads,

• In order to achieve these cost savings, the company expects to incur exit and related costs, primarily related to employee compensation and benefits and facility exit costs, of approximately $400 to $500 million

• The company anticipates most costs related to position eliminations will be incurred in the second half of 2023, and costs related to real estate will be incurred in 2023 and 2024.

The filing which was submitted to the SEC on Monday was to reduce headcount and professional services. Through this initiative, the brokerage giant is expected to save $500 million if this will be implemented in the coming days.

However, Charles Schwab did not disclose the number of employees that will be affected in the proposed layoffs which is expected to kickstart before the end of 2023, while the firm also clarified that the real estate exit costs may start in 2024.

Insight on the number of employees that will be affected, the company said,

• 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.