Charles Schwab (NYSE:SCHW) said Monday it is laying off 1,000 employees from the combined Schwab-TD Ameritrade company.
"We have begun notifying individuals that their roles have been eliminated and they will be leaving the firm," Schwab said in a press release. "This will result in a reduction of approximately 1,000 positions or about 3% of the combined workforce of Charles Schwab and TD Ameritrade."
Schwab did not immediately comment on what roles will be eliminated.
The company also said the job cuts constitute about 3% of the companies' combined workforces. "Since the close of our acquisition, teams across our combined organization have been working hard to create the best operating model in service to our clients and each other," the company says.
"Today, we are taking further steps to bring our companies together — streamlining our structure and reshaping our branch network."
SCHW went on to say, "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," it continues. Employees impacted by the cuts will have early access to new positions and be treated as internal candidates through their 60-day notice period.
Last year, Charles Schwab agreed to buy TD Ameritrade for $26 billion. Together, the brokerage firms have roughly 28 million customer accounts with more than $6 trillion in client assets. At the time, Schwab and TD Ameritrade had combined annual revenue of about $25 billion.
SCHW shares began Tuesday dipped 39 cents, or 1%, to $38.76.
