Charles Schwab Stock Slips After Plan to Cut 3% of Workforce

Charles Schwab stock was lower after the broker said it would cut about 3% of its jobs. The move follows its acquisition of TD Ameritrade.
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Charles Schwab  (SCHW) - Get Report stock was slipping after the financial-services company said it would cut 1,000, or about 3%, of its jobs.

The move followed Schwab's acquisition of TD Ameritrade. "These reductions are part of our efforts to reduce overlapping or redundant roles across the two firms, but the combined firm will continue to hire in strategic areas critical to support our growing client base," the company said in a statement. 

The company said that employees who have lost their jobs "will have early access to all newly opened positions and be treated as internal candidates for the more than 1,000 currently open positions at Schwab through their 60-day notice period."

The $26 billion merger was finalized Oct. 6, forming a company with about $6 trillion in client assets.

Earlier this month, Charles Schwab reported third-quarter earnings that beat analysts' forecasts, while revenue fell short of expectations.

The company reported earnings of 51 cents a  share on revenue of $2.45 billion, compared with analysts' expectations of 48 cents on revenue of $2.47 billion.

In June, Charles Schwab said the Justice Department's antitrust division closed its inquiry into the online broker's proposed acquisition of TD Ameritrade, paving the way for the roughly $26 billion deal to proceed.

Shares of the San Francisco company at last check were down 0.9% to $38.79. As of the close of trading Monday, the stock was 40% above its 52-week low of $28, set in mid-March. It remains 24% below its 52-week high above $51, set last December.