US brokerage firm Charles Schwab announced plans to reduce its workforce amid ongoing economic challenges.

Facing a backdrop of heightened inflation, rising interest rates, and escalating borrowing costs, Charles Schwab is joining a growing number of Wall Street firms and corporate entities that are trimming their workforce to contain expenses.

While the exact number of impending layoffs remains undisclosed, some have perceived the move as a reaction to the uncertain financial climate. Earlier in the year, the Texas-based company resorted to pricier funding avenues, such as securing loans from the Federal Home Loan Bank, to bolster its cash flow.

In a move to further streamline operations, Schwab is also evaluating its real estate holdings, with intentions to either shut down or reduce the size of specific corporate offices. The firm estimates that these combined efforts will result in “about $500 million of incremental annual run-rate cost savings.” Expenses associated with the layoffs are expected to be most significant in the latter half of 2023.

This comes after Charles Schwab recently reported a modest decline in its second-quarter profit.