Charles Schwab cuts 1,000 employees post-TD Ameritrade deal

Discussion in 'Wall St. News' started by ajacobson, Oct 26, 2020.

  1. ajacobson

    ajacobson

    CHARLES SCHWAB M&A
    Charles Schwab cuts 1,000 employees post-TD Ameritrade deal
    By Jessica MathewsOctober 26, 2020, 6:22 p.m. EDT1 Min Read


    Twenty days after closing its $22 billion deal for TD Ameritrade, Charles Schwab is cutting about 1,000 employees in an effort to reduce redundancy, according to the company.

    Schwab notified employees on Oct. 26 that it would terminate 3% of the company’s combined workforce.

    “We have begun notifying individuals that their roles have been eliminated and they will be leaving the firm,” said the note from Schwab’s executive counsel, which stated that the company was “streamlining our structure” and “reshaping our branch network.”

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    Schwab said there would not be additional layoffs in 2020, but it left the door open to future staffing changes.

    “Teams will be combining over time, and each enterprise will proceed at a different pace over the next 18 to 36 months,” the company stated. “Leaders will share more context specific to your enterprise as soon as they can.”

    Among those let go this week were several veterans of TD Ameritrade Institutional. They included Kate Healy, former managing director of Generation Next; Kristin Petrick, former managing director of marketing and communications; Pete Dorsey, former managing director of institutional’s sales and advisor management; and Jim Dario, former managing director of product management, according to wealthmanagement.com.

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    Michael Nagle/Bloomberg
    A Schwab spokeswoman declined to confirm their departures, stating that Schwab “will not be commenting on individual staffing actions.”

    Earlier this month, Schwab parted ways with Tom Nally, former president of TD Ameritrade Institutional, who had been with the advisor services division for more than 26 years. Other executives, including Skip Schweiss, head of TD Ameritrade’s retirement plan solutions business, and Dani Fava, the former director of institutional innovation, left the firm prior to the deal’s close.

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    In the notice, Schwab thanked the laid off employees and said it would provide reemployment assistance and severance benefits to them.

    Employees let go will have “early access” to all newly opened positions and be treated as internal candidates for more than 1,000 current job openings at the company during their 60-notice period, according to Schwab.

    Prior to the acquisition, TD Ameritrade had roughly 8,900 full time employees, according to the last quarterly report it filed with the SEC.
     
    TimtheEnchanter and guru like this.
  2. normal shite otherwise they would have been reluctant to make the deal...payback re $ can be a bitch
     
  3. 22 Bil. for Think or Swim it is, they did never want the company, just TOS and maybe a hand full of clients
     
  4. Cut the fat

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  5. what you think is so special about TOS, that you think That was Mainly reason behind merger ?
    I bet Either you have no answer to your post or you IN LOVE with TOS.
     
    TimtheEnchanter likes this.
  6. gkishot

    gkishot

    Nothing special, just the most convenient user friendly application out there. Plus customer support.
     
    TimtheEnchanter likes this.
  7. VicBee

    VicBee

    Nah, it's the customers list they want. TOS is good but it can be replicated for a couple million. The customers however... That's gold.
     
    apdxyk likes this.
  8. you think a similar plateform to TOS could be build with couple of millions ? Are u serious

    TOS was bought for around $600 Million, Tradestation before that for $445 Million, Option house and option express around same amount by E*trade and Schwab
     
  9. I trade with TWS and used to trade with MT4 but know many (Dest among them( who love TOS and to them if Schwaab is providing TOS they will remain at Schwaab.
     
  10. Death by 1000 cuts. Excellent!
     
    #10     Oct 27, 2020