In what is the latest round of layoffs, Charles Schwab announced on Wednesday that it would be letting go nearly 200 more workers as it merges with TD Ameritrade and integrates its workforces. Last October, Schwab laid off 1,000 of its workers. Most of the laid-off workers are said to have been former Ameritrade employees.
Shares of Charles Schwab were trading slightly lower by 1 percent on Wednesday when the layoffs were announced.
The Schwab-TD Ameritrade integration created a financial industries giant with combined brokerage accounts of almost 30 million and almost $6.7 trillion in client assets.
Mayura Hooper, a Charles Schwab spokesperson, noted in an email, “We are taking another step in that work and have notified approximately 200 of our colleagues that their roles are being eliminated. These job reductions are part of our continuing efforts to reduce overlapping of redundant roles across the two firms. At the same time, we are continuing to hire in strategic areas critical to support our growing client base and evolving product and service offerings.”
The firms expect that it will take 18 to 36 months for the integration to be completed. In the interim, the company will streamline its operations.
Though the company is laying off workers, Schwab said it plans to hire over 1,400 more employees for more strategic roles catering to more of its evolving client base. Employees who are laid off will be allowed to apply for those jobs and even have early access to the application process.
Charles Schwab is the largest financial services organization in the U.S., with client assets of more than $3.3 trillion. The company’s fourth-quarter results for 2020 beat analysts’ expectations. Adjusted net income rose 68 percent in a year-to-year comparison and its’ earnings went up by 17 percent. Schwab’s revenue sailed 60 percent higher to almost $4.2 billion.