Finance

Charles Schwab lays off 200 more employees amid TD Ameritrade integration

charles-schwab-lays-off-200-more-employees-amid-td-ameritrade-integration

A pedestrian passes a bank branch of Charles Schwab Corp. in downtown Chicago, Illinois.

Christopher Dilts | Bloomberg | Getty Images

Brokerage firm Charles Schwab announced on Wednesday that it is laying off around 200 employees from the combined Schwab-TD Ameritrade company.

This is the latest round of layoffs after a cleanup of 1,000 employees in October 2020.

“We are taking another step in this work and have informed about 200 of our colleagues that their roles will be canceled,” said Schwab spokeswoman Mayura Hooper in a statement sent via email.

The $ 22 billion merger of Schwab and TD Ameritrade completed last October, creating an online brokerage giant with nearly $ 6.7 trillion in client assets and nearly 30 million brokerage accounts.

The integration of the two companies is expected to happen over the next 18 to 36 months as the company streamlines its operations.

Charles Schwab’s shares were down nearly 1% on Wednesday.

“These downsizing is part of our ongoing efforts to reduce overlapping or redundant roles between the two companies. At the same time, we are continuing to recruit strategic areas that are critical to supporting our growing customer base and advancing our product and service offerings,” said Hooper added.

Schwab also said that despite the layoffs, it will continue to hire more than 1,400 people in strategic areas that are critical to supporting its growing customer base. The laid-off employees have early access to all newly opened positions.

It is unclear which departments will be affected by the layoffs.

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Robert Dunfee