Schwab reportedly laid off up to 2,000 employees; analyst reiterates outperform

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Schwab reportedly laid off up to 2,000 employees; analyst reiterates outperform
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Steve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.

Charles Schwab Corp.’s stock SCHW, +2.54% fell 0.5% on Wednesday on the heels of a report by RIABiz that the broker has laid off up to 2,000 employees this week as part of a previously disclosed effort to save $500 million in the second half of the year.

William Blair analyst Jeff Schmitt reiterated an outperform rating on Schwab “due to the potential for a significant rebound in EPS in 2024 and 2025 as cash sorting abates, short-term funding costs decline, client cash stabilizes, organic growth returns to historic levels and share buybacks reemerge,” Schmitt said in a research note on Tuesday.

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