As part of Charles Schwab’s purchase of TD Ameritrade, which wrapped up Oct. 6, a large number of jobs are being eliminated, Schwab officials said Monday.
“We have begun notifying individuals that their roles have been eliminated and they will be leaving the firm. This will result in a reduction of approximately 1,000 positions or about 3% of the combined workforce of Charles Schwab and TD Ameritrade,” the Schwab Executive Council wrote in a statement.
The officials added that they do not expect further companywide reductions to take place this year, and added that these reductions aim to trim the number of redundant roles at the two entities.
“But the combined firm will continue to hire in strategic areas critical to support our growing client base,” the statement explained.
“Teams will be combining over time, and each enterprise will proceed at a different pace over the next 18 to 36 months,” the council added. “Leaders will share more context specific to your enterprise as soon as they can.”
Commenting on Twitter, Technology Tools for Today’s Joel Bruckenstein said: “This is sad, but it was inevitable … .”
The development comes two weeks after then TD Ameritrade Institutional President Tom Nally and seven other TD Ameritrade executives left Schwab as part of the $22 billion transaction.
Nally stood to receive $8.9 million in total payments and benefits as part of his “golden parachute.” Former TD Ameritrade CEO Tim Hockey departed in February with a package worth more than $37 million.
The two brokerage firms had a total of $6.1 trillion of client assets in August. In June, the combined assets handled by their registered investment advisor, or RIA, clients was $2.6 trillion — of which $1.9 trillion was at Schwab and $700 billion at TD Ameritrade.
When Schwab reported its third-quarter results on Oct. 15, total client assets jumped year over year by 17% to nearly $4.4 trillion — with RIA-related assets at $2.02 trillion and retail investor assets at $2.38 trillion.
Net new assets at Schwab for the period ending Sept. 30 — viewed as a key growth metric in the business — fell 10% overall from a year ago and 63% from the prior quarter to $51.2 billion.
Schwab will host its annual RIA conference, Impact, online this year on Tuesday and Wednesday.