Charles Schwab announced 3% job cuts, or roughly 1,000 layoffs, from Charles Schwab and TD Ameritrade’s combined workforce on Monday. Schwab claimed it would extend support for the affected employees with reemployment assistance and severance benefits.

What Happened: The current round of layoffs will attempt to eliminate “redundant” and “overlapping” roles and the company disclosed that, despite the uncertainty, it would not make any further headcount reductions this year.

The financial services company will continue to hire across critical functions that support its client base. All employees facing the ax would be granted early access to these internal job postings.

Why Does It Matter: Schwab acquired TD Ameritrade Holding Corporation in 2019 for $26 billion in an all-stock transaction. The financial services company said the purchase helped its portfolio grow by 12 million in new client accounts with $1.3 trillion in client assets and an annual revenue boost of $5 billion.

According to CNBC, the newly created entity from the Charles Schwab-TD Ameritrade merger deal has a portfolio of 28 million accounts with approximately $6 trillion worth of client assets under management.

Although the merger was closed this month, it could take another 18 months to 36 months to streamline the organizational structure, Charles Schwab said.

Price Movement: SCHW shares dropped 2.97% on Monday to close at $39.15.

This story originally appeared on Benzinga.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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