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Charles Schwab to reduce headcount to bring down costs


(Reuters) – U.S. brokerage firm Charles Schwab said on Monday it plans to reduce its operating costs primarily by lowering its headcount.

Several companies across corporate America, including Wall Street banks, have trimmed their workforce this year in a bid to rein in costs amid still-high inflation, rising interest rates and higher borrowing costs.

Charles Schwab said in a regulatory filing it was currently assessing its real estate footprint, and that it planned to close or downsize certain corporate offices.

The company also said it expected to realize about $500 million of incremental annual run-rate cost savings to be achieved by undertaking these actions.

The U.S. brokerage firm said it anticipated most costs related to layoffs would be incurred in the second half of 2023.

Shares of the company were up marginally in extended trading.

In July, Charles Schwab reported a smaller-than-expected drop in second-quarter profit, as a jump in asset management fees helped soften the hit from a decline in interest revenue.

(Reporting by Jaiveer Singh Shekhawat and Granth Vanaik in Bengaluru; Editing by Krishna Chandra Eluri and Maju Samuel)

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