Charles Schwab To Cut Jobs, Downsize Offices To Lower Costs: The Details

Charles Schwab Corp SCHW shares are volatile after the close on Monday. The company announced plans to cut jobs and downsize offices to reduce costs.

What To Know: In a new regulatory filing, Charles Schwab said it plans to cut jobs and reduce its real-estate footprint in order to streamline operations in preparation for its integration with TD Ameritrade. 

The company expects to realize at least $500 million in cost savings on an annual basis related to the aforementioned actions. Charles Schwab noted that it expects to incur $400 million to $500 million in exit and related costs, primarily due to employee compensation and benefits.

Most of the costs related to the headcount reduction will be realized in the second half of 2023. Costs related to real estate will be incurred in both 2023 and 2024, the company said.

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SCHW Price Action: Charles Schwab shares were up 0.17% after hours at $59.51 at the time of writing, according to Benzinga Pro.

Photo: Mike Mozart from Flickr.