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Charles Schwab to cut about 1,000 jobs

Charles Schwab to cut about 1,000 jobs

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Schwab drops stock trading commissions as fee war escalates

FILE - This July 14, 2010, file photo, shows a Charles Schwab office in Oakland, Calif. Charles Schwab is dropping commissions for online trading of U.S. stocks and exchange-traded funds, the latest slash in an industry battle that’s drastically cut the cost of investing. The announcement on Tuesday, Oct. 1, 2019, sent shares of other brokerages plummeting. (AP Photo/Paul Sakuma, File)

Charles Schwab Corp. said on Monday it is laying off about 1,000 positions in the combined workforce of Charles Schwab and TD Ameritrade to streamline and reshape their branch network.

“These reductions are part of our efforts to reduce overlapping or redundant roles across the two firms,” Charles Schwab, which completed the acquisition of TD Ameritrade earlier in October, said.

The financial services company also said it won’t be executing any additional company-wide reductions for the rest of 2020.

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“Employees whose roles are impacted by today’s changes will have early access to all newly opened positions and be treated as internal candidates for the more than 1,000 currently open positions at Schwab through their 60-day notice period,” the company said on Monday.

In November last year, Charles Schwab had agreed to buy TD Ameritrade Holding in an all-stock deal valued at $26 billion.

In 2016, TD Ameritrade and Toronto-Dominion Bank agreed to buy Town and Country-based Scottrade Financial Services and Scottrade Bank in a $4 billion deal. At the time, Scottrade employed about 1,800 people in the St. Louis area. By last year, TD Ameritrade had laid off about 1,000 people, but added call center workers. As of August 2018, it had about 1,200 local employees. In April, TD Ameritrade said it planned to add about 300 "full-time client services trainee jobs" in St. Louis.

It’s unclear how many St. Louis area workers are affected by the latest job reductions. A spokeswoman for Schwab said the company is committed to retaining a presence in St. Louis past the integration of the two companies, which is expected to take 18 to 36 months. The company is still deciding on a longer-term strategy for the St. Louis workforce, which it said it will share when the companies are almost finished integrating. 

Earlier this month, Charles Schwab reported third quarter adjusted earnings per share of 51 cents, topping analysts’ estimates of 46 cents a share, according to Refinitiv IBES data.

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