According to reports, brokerage company Charles Schwab is considering cutting about 600 jobs. Charles Schwab is considering the job cut due to a poor performance from its banking unit and changing Federal Reserve policies.
Charles Schwab’s banking unit contributes to more than half of the company’s overall revenue of $10.13 billion last year.
According to reports, Charles Schwab did not anticipate the interest rate cuts by the Federal Reserve. In July, the Federal Reserve cut interest rates again amid concerns of inflation, economic slowdown, and the US-China trade war.
Most of the job cuts are expected to be in the retail division that includes Charles Schwab’s financial advisers and jobs which involves working with clients to manage investments.
The company, which is the biggest investment brokerage firm in the US with $3.2 trillion in assets under management, is also planning to shut down its offices in Singapore by the end of the year.
In a statement on its website, the company said, “Charles Schwab Singapore will cease to provide services and will close its office in Singapore. We will no longer open new accounts for prospective clients.”
Charles Schwab opened its offices in Singapore late in 2017. It will now focus on expanding its business in China, Hong Kong, Latin America, and Europe.
Recently, the company has stated that it will not offer direct trading services of cryptocurrencies at this point in time. However, experts see Charles Schwab offering direct trading of cryptocurrencies in the future. Schwab rival Fidelity has embraced cryptocurriencies, currently, it provides bitcoin trading and custody services.