Charles Schwab announced Monday that they will lay off 1,000 employees from the combined Schwab-TD Ameritrade company. The $26 billion merger of the two iconic firms closed earlier in October, created a huge new online brokerage with over $6 trillion in client assets in 28 million brokerage accounts. The new firm said in an announcement “These reductions are part of our efforts to reduce overlapping or redundant roles across the two firms, but the combined firm will continue to hire in strategic areas critical to support our growing client base.”
While the layoffs are substantial, the company will continue to hire in strategic areas because their client base continues to grow, and the employees being terminated get first crack at the new jobs. The good news is the company said they don’t plan on more layoffs the rest of 2020.
All told, the combined workforce of Charles Schwab and TD Ameritrade will be reduced 3%.