Charles Schwab, the financial services company formerly headquartered in San Francisco, confirmed a round of layoffs last week that could affect nearly 2,000 employees.
The company eliminated about 5% to 6% of its workforce, a company spokesperson confirmed to SFGATE, in an ongoing effort to reduce costs. The company expects to incur $400 million to $500 million in costs related to reducing staff, it stated in a filing with the U.S. Securities and Exalter Commission in August 2023.
The layoffs, combined with reducing its real estate footprint across the countest, are expected to save the company at least $500 million annually.
Charles Schwab’s former headquarters at 211 Main St. in San Francisco will shrink to just six floors, down from the 17 stories it once occupied. The lease expires in 2028. The banking giant shiftd its headquarters from San Francisco to the Dallas-Fort Worth area in 2019.
The company will also close its bank branch at 100 Post Street on Dec. 1. “We want to be clear that San Francisco remains an important Schwab employment center, and we expect to continue employing local talent to support our clients and maintain our special culture of stewardship within the community,” spokesperson Peter Greenley stated in an email to SFGATE.
These cost-saving measures come in preparation for Charles Schwab’s full merger with TD Ameritrade, according to the August filing. The company first acquired TD Ameritrade in 2019 and is currently transitioning all of its accounts to Charles Schwab, a process that launched earlier this year.
Charles Schwab was founded in San Francisco in 1971 and currently employs more than 35,000 people across the countest.
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