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Schwab (SCHW) Cuts Additional 200 Jobs Post TD Ameritrade Buyout

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Charles Schwab (SCHW - Free Report) announced that it cut another 200 jobs post the acquisition of TD Ameritrade as it continues with its efforts to lower overlapping or redundant roles across the two firms.

On Oct 6, 2020, Schwab concluded the acquisition of TD Ameritrade for roughly $22 billion, which has led to the creation of a behemoth in the online brokerage space. The acquisition is expected to deliver substantial scale to Schwab, helping it drive long-term growth and serve a wide spectrum of customers at lower costs.

A few days after the acquisition, Schwab announced a reduction of nearly 1,000 positions or 3% of the combined workforce as part of the integration process (which will likely take a total of 18-36 months).

The latest cuts are in addition to the above-mentioned 1,000 jobs that the company reduced last year.

While Schwab has been engaging in these job cuts, it is also hiring in strategic areas, which are critical in supporting the combined firm’s growing client base, and evolving product and service offerings.

Notably, Mayura Hooper, the spokeswoman for Schwab, said that the affected employees will get early access to all new positions opened in the firm and will be treated as internal candidates for more than 1,400 job openings currently at the company.

Over the past six months, shares of Schwab have gained 60.9% compared with 48% growth recorded by the industry it belongs to.






Currently, the company carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks from the same space are mentioned below.

Interactive Brokers Group, Inc.’s (IBKR - Free Report) earnings estimates for 2021 have been revised 22.4% upward over the past 30 days. Its shares have gained 41.3% in the past three months. Currently, the company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings estimates for LPL Financial Holdings Inc. (LPLA - Free Report) have increased 4.7% for the current year over the past 30 days. The Zacks Rank #2 stock has gained 43.6% in the past three months.

Morgan Stanley’s (MS - Free Report) earnings estimates for 2021 have been revised 7.6% upward over the past 30 days. Its shares have gained 31.7% in the past three months. Currently, the company carries a Zacks Rank #2.

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