Charles Schwab and TD Ameritrade’s merger aimed at dominating the discount stock-trading market will come with a cost for some of their staffers.
Schwab plans to lay off about 1,000 workers now that it’s acquired its one-time rival in an effort to “reduce overlapping or redundant roles across the two firms,” the San Francisco-based brokerage said.
Schwab told employees in a Monday message that it has started notifying affected staffers about the layoffs, which account for roughly 3 percent of the companies’ combined workforce.
“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,” Schwab said in the note.
Schwab didn’t detail which departments would be hit by the cuts, but it did say that no more company-wide layoffs are on the horizon this year. The firm also plans to keep hiring for positions needed to support its growing client base and will give laid-off staffers early access to newly opened jobs, according to the note.
Schwab and TD Ameritrade announced the completion of their tie-up on Oct. 6. The deal — valued at about $26 billion when it was announced last November — created a massive discount brokerage with roughly $6 trillion in assets across 28 million brokerage accounts.
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