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November 11, 2020 at 12:18 PM
Charles Schwab is closing almost 80% of TD Ameritrade’s network of about 260 branches that serve investors, according to Joe Martinetto, senior executive vice president and COO at Charles Schwab.
The move is part of planned expense reductions tied to the integration of TD Ameritrade into Charles Schwab as part of the $22 billion transaction that closed Oct. 6.
“We’re retaining about 55” of the TD branches, and staff working in “the majority of the rest will co-locate into nearby Schwab branches, where we’ll have both Schwab and TD Ameritrade employees,” he said during Schwab’s recent fall update webcast.
“Our combined branch footprint after the consolidation will be larger, with over 400 branches, 140 of which will be shared through conversion, and 90% of our clients will have a branch within 25 miles up from 80% before the transaction,” he explained.
“We’ve already taken steps to achieve between $250 million and $300 million in expense reductions,” according to Martinetto.
“We’ve aligned the management structure, and across management in the branch network eliminated over about 1,000 roles,” he stated.
His comments during the business update webcast came three days after the Schwab Executive Council explained in a statement that the layoffs affected about 3% of the combined workforce of Charles Schwab and TD Ameritrade.
