Charles Schwab says it is preparing to reduce both its headcount and real estate footprint in a series of cost-cutting measures aimed at streamlining operations.
The San Francisco-based brokerage giant reported in a Securities and Exchange Commission filing the moves were “directly related to the integration of TD Ameritrade,” which Schwab acquired in 2020.
Schwab said the company is looking to close or downsize some of its corporate offices, and “plans to reduce its operating costs primarily through lower headcount and professional services.”
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In response to FOX Business‘ request for comment, the company said in a statement, “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.”
Schwab did not say how many jobs might be impacted by the move, but added, “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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According to the filing, the company expects to save at least $500 million a year through these cuts, but expects to pay as much as that in employee compensation benefits and facility exit costs when they occur.
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The layoffs will likely happen before the end of the year, the filing said, while the real estate exit costs will likely carry into 2024.