Charles Schwab has started cutting staff alongside its San Francisco office reduction, a move the brokerage giant estimates will trigger up to half a billion dollars in one-time costs. The layoffs and real estate pullback aim to strip out at least $500 million in annual expenses, according to a new regulatory filing.
The announcement lands during a broader consolidation wave across the financial services sector. Schwab continues absorbing TD Ameritrade, a deal struck in 2019 that launched full-scale account migration earlier this year. Cost-cutting now prepares the combined entity for life after integration.
The company projects $400 million to $500 million in charges tied to severance and workforce elimination. Savings from both headcount reductions and office downsizing should reach half a billion dollars annually once complete.
A spokesperson declined to specify how many positions will disappear. The cuts will concentrate in non-client-facing departments, targeting operational complexity rather than advisory or branch roles.
Meanwhile, the company is shrinking its physical footprint nationwide. Its 211 Main St. location in San Francisco faces downsizing while other offices close outright. Schwab shifted its headquarters to the Dallas-Fort Worth metroplex in 2019, and the former San Francisco headquarters property remains partially occupied during the transition.
The SEC filing states the company plans to “close or downsize certain corporate offices” while lowering operating costs through reduced professional services spending and lower headcount.
Schwab employs roughly 30,000 people, with about 2,521 based in the Bay Area, according to LinkedIn data. Workers affected by the cuts will receive notifications over the coming months.
The restructuring unfolds as Schwab works to complete its merger with TD Ameritrade. Clients continue moving onto Schwab’s platform throughout this year, creating operational redundancies the company now seeks to eliminate.
