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Schwab Cuts More TD Ameritrade Execs

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What You Need to Know

  • Schwab has eliminated at least another two TD Ameritrade executives as part of the ongoing integration of the two firms, a source says.
  • Also cut were almost all remaining HR associates, at both TD Ameritrade Institutional and its retail business.
  • Schwab acknowledged that job cuts were made but declined to say how many.

Charles Schwab eliminated more jobs at TD Ameritrade on Monday, including at least another two of its executives, as part of the ongoing integration of the two firms, according to an industry source.

The cuts included George Tamer, managing director of TD Ameritrade Institutional sales and Matt Judge, director of RIA Strategic Relationship Management at TD Ameritrade Institutional, the source, who requested anonymity because the cuts were not yet announced, told ThinkAdvisor. Tamer and Judge will remain with the firm until October, the source said.

Also eliminated were nearly every remaining human resources associate, at both TD Ameritrade Institutional and its retail business, the source said, adding it was possible at least some Schwab jobs were cut also but “most were likely TDA.”

“No one seems to know the exact number” of cuts that were made on Monday, “but it sounds like this is probably the second largest round of layoffs since the first one in October which included 100s of branch associates,” the source told ThinkAdvisor in a LinkedIn message. “It’s got to be well over 1,000 by now.”

Schwab declined to say how many jobs were cut. “We have not disclosed numbers and we don’t comment on employees,” Schwab spokeswoman Mayura Hooper told ThinkAdvisor on Tuesday.

“As we’ve stated previously, achieving our goals for the integration of Schwab and TD Ameritrade requires difficult but necessary organizational changes designed to create the strongest firm possible for our clients,” she explained. “Our actions primarily address overlapping and duplicative roles and have little to no impact on client servicing roles.”

Schwab is providing “transition support to everyone who is impacted, including reemployment assistance and severance benefits, as well as consideration for open positions at Schwab,” she said. “Importantly, we are taking these actions in the context of a rapid expansion of our workforce and record levels of hiring to support areas of growth in our combined company.”

The firm is ”hiring aggressively across Schwab and TD Ameritrade, with a particular emphasis on service and technology professionals, across our employment centers, including Dallas-Fort Worth, San Francisco, Omaha, St. Louis, Austin, Phoenix and Denver,” she added.

Tamer and Judge did not immediately respond to requests for comment on Tuesday.

After completing its acquisition of TD Ameritrade in October, Schwab said in November that it was closing almost 80% of TD Ameritrade’s network of about 260 branches that serve investors. The company had already taken steps to achieve between $250 million and $300 million in expense reductions, it said at the time. Schwab aligned the management structure and across management in the TD branch network eliminated over about 1,000 roles, it said.

In February, Schwab disclosed that it slashed another 200 or so jobs as part of the ongoing integration with TD Ameritrade. And, in May, Schwab said it eliminated more jobs at TD Ameritrade, including at least three of its executives, as part of the ongoing integration of the firms.