Tyler Durden
"Update (Wednesday):
A Charles Schwab spokesperson confirmed to Bloomberg that up to 6% of its 35,900-member workforce (or about 2,154 employees) were recently laid off.
"The cuts were first reported by The Wall Street Journal on Monday night (as we noted below).
The last time Schwab went on a hiring - then firing - spree was the Dot Com bubble, but as a company spokesperson noted, this cut is part of the company's efforts to curb costs as it continues to integrate TD Ameritrade.
As Bloomberg reports, the firm has experienced temporarily lower net flows of client money amid attrition of some retail and advisory clients’ assets as it folds TD Ameritrade into its business.
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Charles Schwab, the largest publicly traded US brokerage firm, began laying off employees on Monday in an effort to streamline its business model by reducing expenses ahead of next year, which could be full of turbulence in financial markets. This comes as the market's excitement in meme stocks, SPACs, IPOs, and crypto, which soared in 2020-21, has since plunged due to a rising interest rate environment. "
"...Perhaps trouble at Schwab comes as retail traders, badly bruised from holding worthless meme stocks, lost interest in financial markets this year. "