Charles Schwab Corp is laying off about 600 employees in a bid to cut costs when the Federal Reserve recently cut interest rates by weighing the bank's arm.
The job cuts make up about three percent of the San Francisco-based company's overall workforce and will affect offices across the country. A spokesman for Charles Schwab said the layoffs were meant to ensure the company remains "well positioned to serve customers while navigating an increasingly challenging financial environment."
"Impressed positions span all staffing levels, as well as organizations and locations throughout the company. While it is never easy to say goodbye to valued colleagues, these actions are a reasonable step to ensure that we control our cost growth, at the same time as we continue to invest in initiatives that allow us to achieve greater scale and efficiency ̵
The Wall Street Journal was the first to report on job cuts.
The Federal Reserve cut interest rates in July amid concerns about inflation, slowing economic growth and global trade disputes, and more interest rate cuts are expected in the near future, a leader of Charles Schwab told employees at the meeting that the company's internal forecasts had not planned a interest rate cut, the Journal reports, citing a source familiar with the matter.
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Charles Schwab's bank accounted for more than half of its approximately $ 10 billion in revenue in 2018.