Charles Schwab Corporation, a financial services company, has recently announced a lay-off of 1,000 employees from the recent merger between Schwab and TD Ameritrade.
As per the reported statement made by Charles Schwab, the company has started notifying employees that their roles have been eliminated. The latest move will result in a reduction of over 1,000 positions or around 3% of the overall workforce of TD Ameritrade and the company.
Schwab further added that the recent move to lay off employees is a part of the company’s efforts to reduce overlapping or redundant positions across the two companies. However, the combined company is expected to continue hiring for strategic roles that are critical in supporting the increasing client base.
Schwab reportedly closed a $26 billion merger deal with TD Ameritrade, offering a behemoth online brokerage with above $6 trillion in client assets as well as 28 million brokerage accounts. This all-stock deal, which was announced in November 2019, will provide a substantial scale to the company, assisting it in driving long-term growth and serving multiple customers at low costs. Furthermore, the deal is anticipated to lower the operational costs of the clients.
The integrated operation of the two firms is likely to take place in the coming 18 to 36 months. This deal significantly aligns with Schwab’s aim to streamline its structure.
In addition, Schwab has stated that the company will continue to hire critical employees to its team. Despite the lay-offs, the terminated employees will be able to apply for the newly opened positions in the combined company.
The company has not revealed the departments from which the employees will be terminated. Moreover, it is not expecting further layoffs in 2020.
Schwab is yet to respond to requests for comments on the recent dismissals of employees.
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