Schwab lays off another 200 employees post-TD Ameritrade acquisition

Four months after its acquisition of TD Ameritrade, Charles Schwab is laying off another round of employees, according to the company.

Schwab notified approximately 200 employees on Feb. 8 that their roles were being eliminated, according to a company spokeswoman.

“These job reductions are part of our continuing efforts to reduce overlapping or redundant roles across the two firms,” the spokeswoman said in a statement, noting that the company must make “difficult but thoughtful decisions that enable us to meet our expense synergy targets.”

The layoffs were first reported by the San Francisco Business Times.

Schwab’s acquisition of TD Ameritrade has created an industry giant that services more than 13,000 advisory firms. It’s also boosted the firm’s headcount. Schwab had about 32,000 full-time employees at the end of last year, up from 22,100 prior to closing the TD Ameritrade deal in October.

In recent months, Schwab has eliminated more than 1,000 positions. Among those who have lost jobs were former TD Ameritrade executives and employees that serviced independent financial advisors, some of whom have since found employment at rival custodians and RIAs.

Schwab has previously said the integration of TD Ameritrade will take 18 to 36 months. While the company is still on track to meet that timeline, executives said during the company’s annual meeting on Feb. 2 that they are re-examining some of the company’s initial integration plans in order to address service issues the firm has experienced amid market volatility.

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CEO Walt Bettinger said that the company’s service has been “uneven at best,” over the last year, particularly due to the sheer volume of requests in March and December. This has been “disappointing to us as well as our clients, at times,” he said.

Even as it eliminates positions, Schwab is currently hiring for more than 1,400 open positions, according to the company spokeswoman. She said that affected employees will be treated as internal candidates for those spots and will also have early access to newly opened positions.

"We’re committed to providing everyone who is impacted with support to help ensure the smoothest transition possible, including reemployment assistance and severance benefits," the spokeswoman said.