Why Charles Schwab Is Laying Off 3% Of Its Employees

The Charles Schwab Corporation shared a statement with its employees on Monday stating that 3% of its work force will be getting laid off due to the reshaping of branch networks.

The employee cuts come after the company announced that it wants to “reduce overlapping or redundant roles” across Charles Schwab and TD Ameritrade. These firms are merging to form one large company.

The statement goes onto explain that those who have been laid off will have the opportunity to apply for new positions that will be opening within the combined company. Internal candidates will have 60 days to apply for the expected 1,000 openings that will come available.

The corporation is also providing assistance to the 3% who lost their jobs: “We’re committed to providing full transition support to our colleagues and to help ensure the smoothest transition possible, including reemployment assistance and severance benefits.”

Charles Schwab confirmed that no other reductions or lay-offs will occur during the rest of the 2020. This means change will come to the departments of each of the companies and that the different teams will be combining into one.

“Teams will be combing over time, and each enterprise will proceed at a different pace over the next 18 to 36 months.”

There’s been no statement released from the company about which roles or departments will be seeing the cuts.

The statement concludes by thanking those who lost their jobs for sticking with the company through this trying time.

CNN reported that Charles Schwab agreed to purchase the company, TD Ameritrade last year for $26 billion. Both of these corporations combined have around 28 million customer accounts and over $6 trillion in client assets.