Approximately 2,000 workers, or 5% to 6% of the workforce, are let go by Charles Schwab

 Approximately 2,000 workers, or 5% to 6% of the workforce, are let go by Charles Schwab

According to Charles Schwab's most recent quarterly report, the business employed 35,900 people as of the end of September; thus, this week's layoffs may affect around 2,000 of those workers.

According to a corporate representative, Charles Schwab made between 5% and 6% of its personnel redundant this week as the financial services giant looks to reduce expenses.

According to Charles Schwab's most recent quarterly report, the business employed 35,900 people as of the end of September; thus, this week's layoffs may affect around 2,000 of those workers.

A representative at Charles Schwab told The Associated Press on November 2 that "these were hard but essential phases to ensure Schwab remains highly competitive, featuring industry-leading levels of effectiveness while well into the future." "They are mistakes that impact very talented people individually, and we take that very seriously."

Charles Schwab said during the summer that it intended to restructure its business in order to save operational expenses in the second half of this year and the beginning of 2024. As part of this, it planned to eliminate employment and shut or downsize several corporate locations.

The Westlake, Texas-based firm had previously said that it expected to incur expenditures of between $400 million and $500 million for things like employee benefits, pay, and facility exits, in addition to achieving at least $500 million in additional annual run-rate cost reductions.

Charles Schwab reported a $1.1 billion net income for the third quarter of 2023, compared to a $2.0 billion profit during the same time the previous year. Compared to the third quarter of 2022, when revenue was $5.5 billion, it was $4.6 billion for the current quarter.

Although shares of Charles Schwab are up 3% in early trade on November 2, they are down around 34% year to date.