Why Charles Schwab Stock Is Down Today
Charles Schwab (NYSE: SCHW) intends to cut jobs and downsize its corporate office space, looking to save upwards of $500 million annually. Investors are underwhelmed, sending Schwab shares down about 3% on Tuesday morning.
It has been a difficult year for Charles Schwab. Though the company is best known as a discount brokerage, it also has a large deposit-gathering business that has struggled as rates have risen. In June, the company said it has been forced to rely on other, more expensive methods to fund its operations, including borrowing from the Federal Home Loan Bank.
In response, Schwab is looking to cut costs elsewhere. Late Monday, the company disclosed it would lay off an undisclosed number of employees and reevaluate its real estate footprint. The company said it expects to take one-time charges of between $400 million and $500 million as part of the actions, primarily related to employee compensation and facility exit costs.
Source Fool.com
