Charles Schwab announced on Monday that it is laying off 1,000 employees following the TD Ameritrade merger. The job reduction is being made to “reduce overlapping or redundant roles” in both firms.
In a statement to employees, the Schwab Executive Council noted that they have started informing “individuals that their roles have been eliminated and they will be leaving the firm.”
Schwab refused to comment on what roles will be eliminated but revealed it will “continue to hire in strategic areas critical to supporting our growing client base.”
Displaced workers will be granted early access to new and available roles in the company. They’ll also be considered as internal candidates for the positions within a 60-day notice period.
As Charles Schwab takes on-board its consolidation of TD Ameritrade’s technology, the company’s tech leaders are assuring advisors that they will remain proficient and will not deprive their clients of the efficiency they have come to expect.
Andrew Salesky, Schwab senior vice president of digital advisor solutions, says the company is just getting started on its integration and hinted that they are interested in Veo One, TD’s dashboard that has become one the most popular third-party platforms in the fintech industry.
In the words of John Patullo, managing director in charge of TDA’s advisor-facing technology, Veo One offers “a superior experience… built on state-of-the-art technology.” This platform is utilized by eighty percent of TD advisors.
The early stage of integration will allow Schwab to focus on improving the custodian infrastructure to reinforce guided digital workflows and streamlined methods.
In addition, TD’s technology will allow Schwab to modernize some of the core elements of advisor technology.
“Sometimes people when they talk about innovation, they want to talk about the things that are five years out,” says chief digital officer Neesha Hathi. “I think there’s a lot of innovation in the basics. If we can get a really great, end-to-end, paperless, straight-through account [opening process] that you don’t have [not in good order] issues with, that’s pretty cool.”
Schwab also intends to bolster its investment management with TDA technology. This will include the thinkorswim trading platform and iRebal rebalancing engine.
“It’s not just pushing digital paper, it’s creating digital transactions,” Salesky says.