Schwab plans ‘lower headcount,’ office closings to save $500 million

Charles Schwab Corp.
SCHW,
-0.20%
late Monday said it plans to reduce costs to the tune of $500 million a year through a “lower” employee headcount and professional services, without providing more details. The company also plans to close or downsize some yet unnamed corporate offices, according to a filing with securities regulators. “The company is currently assessing its real estate footprint,” Schwab said. It expects at least $500 million in annual run-rate cost savings through both actions, it said. It will incur about $400 million to $500 million in costs, mostly related to employee compensation and benefits and facility exit expenses, mostly in the second half of 2023 and, in the case of real-estate costs, incurred this year and in 2024. Schwab shares ended the regular trading day down 0.2%.