Charles Schwab has undergone substantial workforce reductions, with 4,000 fewer employees than nine months prior, surpassing initial expectations.

According to RIABiz, the firm disclosed a staff count of 32,600 as of March 31, marking an 11 percent decline from its peak total of 36,600 reported on June 30, 2023. The majority of departures, 2,800 out of the 4,000, occurred between September 30 and December 31, 2023, with an additional 400 exits in the first quarter of 2024. Schwab attributes some departures to natural attrition, opting not to replace positions vacated by departing employees.

The reductions align with Schwab's plans to cut expenses by $400 million to $500 million, primarily through headcount reductions and lower professional services costs. While Schwab did not disclose the exact number of positions to be eliminated, estimates ranged from 2,000 to 7,000. The current staff count of 32,600 reflects the company's strategic reassessment following its acquisition of TD Ameritrade, focusing on optimizing organizational structure and trimming managerial positions.

RIABiz also reports that Schwab continues to hire, with 502 openings listed on LinkedIn, including roles in wealth advisory. The Registered Investment Advisor (RIA) division experienced a 60 percent increase in inflows for the first quarter, emphasizing Schwab's commitment to expanding its wealth management offerings.

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