Charles Schwab and TD Ameritrade merge The goal of dominating the discount stock trading market will come at a cost to some of their employees.
Schwab plans to lay off around 1,000 employees after acquiring its one-time competitor to “reduce overlapping or redundant roles between the two companies,” said the San Francisco-based broker.
Schwab told employees in a Monday message that it has started to inform affected employees about the layoffs, which make up around 3 percent of the company’s total workforce.
“We are committed to providing our colleagues with comprehensive transition support and ensuring the smoothest possible transition, including re-employment assistance and severance benefits,” Schwab said in the note.
Schwab did not specify which departments would be affected by the cuts, but said there are no more company-wide layoffs in sight this year. The company also plans to continue filling vacancies it needs to support its growing customer base and to give laid-off employees early access to newly opened jobs, according to the notice.
Schwab and TD Ameritrade announced the completion of their collaboration on October 6th. The roughly $ 26 billion deal when it was announced last November resulted in a massive discount brokerage of roughly $ 6 trillion in assets across 28 million brokerage accounts.