The number of cuts, ranging from 5% to 6% of staff at the Westlake, Texas-based company, translates to as many as 2,154 employees, based on a corporate fact sheet that put the company’s overall headcount at 35,900 at the end of September.
“These were hard but necessary steps to ensure Schwab remains highly competitive, with industry-leading levels of efficiency, well into the future,” the spokesperson said in an emailed statement. “We worked diligently to ensure affected employees were treated with care and respect throughout this difficult process.”
The cuts were reported earlier Wednesday by MarketWatch.
Schwab said in August it planned to cut jobs and close or downsize offices to achieve at least $500 million in annual cost savings amid efforts to strip complexity from the firm. Schwab said at the time that it would incur costs of roughly $400 million to $500 million, “primarily related to employee compensation and benefits and facility exit costs.”
The firm has experienced temporarily lower net flows of client money amid attrition of some retail and advisory clients’ assets as it folds TD Ameritrade into its business. The firm reported $46 billion in core net new assets for the third quarter, including $27 billion for September alone, which was a decline of 32% from a year earlier.
Schwab shares gained for a third straight day, rising 1.3% to $52.73 at 12:41 p.m. in New York. They’re down 37% this year, more than the 5.7% drop in the S&P 500 Financials Index.