Just weeks after closing its acquisition of TD Ameritrade, Charles Schwab Corp. on Monday announced it would lay off around 1,000 employees, or 3% of its combined workforce.
“Today, we are taking new steps to bring our businesses together – streamlining our structure and reshaping our branch network,” Schwab said in a statement. “As a result, we have started to notify individuals that their roles have been eliminated and they will be leaving the company.
“These reductions are part of our efforts to reduce overlap or redundancy in roles between the two companies, but the combined company will continue to hire in strategic areas essential to support our growing customer base,” Schwab said.
The $ 26 billion merger was finalized on October 6, creating a discount brokerage with approximately $ 6 trillion in client assets.
Schwab shares SCHW,
are down nearly 18% year-to-date, compared to the S&P 500’s SPX,
Gain of 5%.