Charles Schwab Lays Off About 2,000

A shot of the lobby at Schwab's Dallas-Fort Worth campus. The financial institution moved its headquarters to Westlake in recent years. | Image by The Charles Schwab Corp

The Charles Schwab Corp. has laid off an estimated 2,000 employees, or about 5-6% of its workforce, The Associated Press reported on Thursday.

“In July, we shared out intent to take certain steps to remove costs and complexity from our organization,” the company wrote in an emailed statement to The Dallas Express. “These steps include some changes to our real estate footprint, streamlining our operating model and staffing reductions, largely in non-client-facing areas.”

Headquartered in Westlake, Charles Schwab employed 35,900 workers at the end of September. It moved its base of operations from California to North Texas in 2021.

Asked whether its North Texas workforce had been impacted by the layoffs, the company declined to say.

“We want to be clear that the Metroplex remains an important Schwab employment center, and we expect to continue employing local talent to support our clients and maintain our special culture of stewardship within the community,” the company said.

According to the AP report, Charles Schwab said it projected to achieve at least $500 million in incremental annual run-rate cost savings while incurring about $400 million to $500 million from such expenses as employee compensation, benefits and facility exit costs.

“We have said goodbye to approximately 5-6 percent of our workforce,” the company said. “These were hard but necessary steps to ensure Schwab remains highly competitive, with industry-leading levels of efficiency, well into the future. They are decisions that impact very talented people personally, and we take that very seriously. We worked diligently to ensure affected employees were treated with care and respect throughout this difficult process.”

In the third quarter of 2023, Charles Schwab posted a net income of $1.1 billion, down from $2 billion in the same period last year. Revenue was $4.6 billion for the quarter, down from $5.5 billion for the third quarter of 2022, the AP reported.

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