AM I NEXT? NO LOVE AT CHARLES SCHWAB (10/31/23)

Am I Next? Charles Schwab cost reduction results in 600 layoffs.

OCTOBER 31, 2023 — 2,000 EMPLOYEES GONE IN SHOCK DISMISSAL

Charles Schwab has dismissed as many as 2,000 employees, including those legacy Schwab and TD Ameritrade staffers, with no public announcement,

According to CEO Walt Bettinger and President Rick Wurster, “We know this has been a challenging year, and that today was hard. We also know the work needed to come through this change even stronger than before is just beginning.”

AUGUST 26, 2023 — REDUCED REAL ESTATE FOOTPRINT AND LAYOFFS

The company has announced plans to lower its headcount in a bid to counter cost pressures and to realign its real estate footprint — code for closing or downsizing corporate offices. No specific details are available yet.

A company spokesperson noted, "We have said, we intend to take a series of actions this year and into 2024 aimed at removing cost and complexity from the firm, including reducing our expense base and streamlining our operating model."

JULY 30, 2021 — ADDITIONAL LAYOFFS

Continuing with its integration with TD Ameritrade acquisition, the company announced additional cuts including managers. The company declined to provide numbers but did issue a statement.

“Achieving our goals for the integration of Schwab and TD Ameritrade requires difficult but necessary organizational changes designed to create the strongest firm possible for our clients. Our actions primarily address overlapping and duplicative roles and have little to no impact on client servicing roles.

We are taking these actions in the context of a rapid expansion of our workforce and record levels of hiring to support areas of growth in our combined company.”

FEBRUARY 9, 2021 — CONTINUING MERGER CONSOLIDATION WITH 200 LAYOFFS

Following the merger with T.D. Ameritrade, Schwab is undertaking the critical and inevitable restructuring to eliminate redundancies.

According to a company spokesperson, “Achieving the goals of our integration with TD Ameritrade also means we must make difficult but thoughtful decisions that enable us to meet our expense synergy targets. Today, we are taking another step in that work and have notified approximately 200 of our colleagues that their roles are being eliminated.”

DECEMBER 31, 2020 — SCHWAB HQ LEAVES CALFORNIA FOR TEXAS

January 1, 2021 — Schwab leaves its San Francisco, California headquarters and officially designates their 70-acre campus in Westlake, Texas as their new HQ. Lower taxes, better living conditions, and ample employees after massive automation.

OCTOBER 26, 2020 — AMERITRADE ACQUISITION TARGETS 1,000 LAYOFFS

The company has announced a major reduction in force of about 3% of the combined Schwab-Ameritrade headcount — an estimated 1,000 employees.

“Today, we are taking further steps to bring our companies together —streamlining our structure and reshaping our branch network. As a result, we have begun notifying individuals that their roles have been eliminated and they will be leaving the firm.”

“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.

NOVEMBER 30, 2019 — BAD NEWS FOR SAN FRANCISCO EMPLOYEES AS SCHWAB BUYS TD AMERITRADE AND MOVES HEADQUARTERS TO TEXAS.

Charles Schwab and Omaha, Nebraska-based TD Ameritrade have entered into a definitive agreement for Schwab to acquire TD Ameritrade in an all-stock transaction valued at approximately $26 billion.

The integration of the two firms is expected to take between 18 and 36 months, following the close of the transaction.

As part of the integration process, the corporate headquarters of the combined company will eventually relocate to Schwab’s new campus in Westlake, Texas.

Both companies have a sizable presence in the Dallas-Fort Worth area. This will allow the combined firm to take advantage of the central location of the new Schwab campus to serve as the hub of a network of Schwab branches and operations centers that span the entire U.S., and beyond. Any additional real estate decisions will be made over time as part of the integration process.

Like all acquisitions, especially those moving to a centralized location, there will be a major reduction in force as duplicative functions are consolidated and redundant personnel laid off to capitalize on the synergies touted by management in explaining the deal to the public.

OCTOBER 1, 2019 — SCHWAB OFFERS FREE TRADES, DANGER AHEAD.

The company has announced that they will be offering their customers free trades, commoditizing the trading function. Look for additional reductions in force as trading volumes and federal interest rates decline.

Previous post…

San Francisco, California-based Charles Schwab Corporation, the online stock brokerage, money management, and bank, has announced that they will be laying off 600 employees in an attempt to significantly reduce operational costs. According to a company spokesperson, the layoffs were implemented in response to falling Federal Reserve interest rates which impact Schwab’s banking operation and brokerage accounts that carry an investable cash balance.

A Charles Schwab spokesperson noted, “We initiated a process to review our expense base to ensure we remain well-positioned to serve clients while navigating an increasingly challenging economic environment. Impacted positions span all staffing grades, as well as organizations and locations across the company. While it is never easy to say goodbye to valued colleagues, these actions are a prudent step to ensure we manage our expense growth while continuing to invest in initiatives that allow us to achieve greater scale and efficiency – like platform improvements and digital experiences.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?