Charles Schwab (SCHW 0.67%) announced in a memo on Monday that it will lay off about 1,000 employees, or roughly 3% of the company's workforce.
The move is a result of cost savings the bank hopes to achieve after its landmark acquisition of TD Ameritrade.
"These reductions are part of our efforts to reduce overlapping or redundant roles across the two firms, but the combined firm will continue to hire in strategic areas critical to support our growing client base," the memo said.
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Employees who are part of the layoffs will have the opportunity to be treated as internal candidates and apply for current openings at Schwab.
The company also said that no additional layoffs would occur in 2020, but that "teams will be combining over time, and each enterprise will proceed at a different pace over the next 18 to 36 months."
Schwab announced its purchase of TD Ameritrade last November in a deal valued at $26 billion that brings together two of the largest registered investment advisor players in the industry. The combined company will have $5.1 trillion client assets and 24.1 million brokerage accounts. The deal closed Oct. 6.
The two firms will now focus on the integration process, which includes realizing cost synergies. Schwab plans for cost savings potentially as high as $2 billion, and will look to cut 60% to 65% of TD Ameritrade's total expense base.
