Schwab is laying off 600 employees amid hit from the Fed's interest rate cuts

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Schwab is laying off 600 employees amid hit from the Fed's interest rate cuts
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The cuts represent about 3% of the bank's workforce and comes across all sectors amid an effort to streamline expenses as net interest revenue comes under pressure.

"This Spring, we initiated a process to review our expense base to ensure we remain well-positioned to serve clients while navigating an increasingly challenging economic environment," the company said in a statement. "As part of that process, we have decided to eliminate approximately 600 positions across the firm. Impacted positions span all staffing grades, as well as organizations and locations across the company.

Rates have been falling amid worries about slowing economic activity both globally and in the U.S. A company source said the staff reductions are a direct result of the income pressure from declining rates, which hurt banks by narrowing the margin between loans and deposits.

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