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Report: Charles Schwab to cut 600 jobs on interest rate pinch

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Report: Charles Schwab to cut 600 jobs on interest rate pinch

Charles Schwab Corp. is set to lay off about 600 employees, or roughly 3% of its staff, The Wall Street Journal reported.

The layoffs, to come as soon as next week, are part of cost-cutting moves resulting from the negative impact of falling interest rates on the company's banking business, the news outlet said, quoting people familiar with the situation.

President and CEO Walter Bettinger II broke the news in a recent town hall with employees, an attendee told the Journal.

Most of the job cuts are reportedly expected to happen in the retail division, which includes Schwab financial advisers and people working with clients to manage investments.

Charles Schwab attributed a record $5.82 billion in net interest revenue in 2018, up 36% year over year, to the Federal Reserve's then-rate normalization and higher interest-earning assets.