Charles Schwab, a US-based financial services company, has laid off 5-6 per cent of its workforce this week. The move is said to be a part of the company’s cost-cutting initiative. The company currently employs about 35,900 employees, and hence, the job cuts may affect about 2,000 workers.
In a media statement, the company stated that the recent actions were tough but essential to make sure the company stays very competitive and efficient in the future. The changes reportedly also involve reviewing the company’s office locations, simplifying how it operates, and reducing the number of employees, especially in areas that don’t deal directly with clients.
These decisions will reportedly affect its skilled employees personally but the company is committed to handling them seriously. Furthermore, the company also stated that it will assist all the affected employees in their smooth transition.
During the summer, Charles Schwab had already revealed its intentions to reduce jobs and scale down some of its corporate offices as part of efforts to lower operating costs in the latter part of this year and the beginning of 2024.
Back in August, the company revealed its goal to save $500 million through cost-cutting actions. It mentioned its intention to reduce the workforce but did not specify the number of employees that would be let go.
Charles Schwab is a financial services firm that provides various services, including investment and brokerage services, banking, and retirement planning. Headquartered in San Francisco, California, the company is recognised for its user-friendly online trading platform and competitive commission rates for experienced investors as well as beginners.