Brokerage and wealth management advisory service provider Charles Schwab (NYSE:SCHW) certainly hasn’t been a darling of the financial market this year. Now, a recent declaration of Charles Schwab layoffs may make some investors more anxious about the company — and even about the nation’s economy.

Before you panic-sell your stocks, however, be sure to learn all of the relevant facts and circumstances around this news. It’s not necessarily the end of the world — or the end of Schwab, for that matter — if the company is taking proactive measures to cut costs.

Charles Schwab Layoffs: What Are the Details?

Here’s the lowdown on the Charles Schwab layoffs. Reportedly, at the end of September, Schwab had almost 36,000 full-time employees. Soon, that number will be notably smaller.

According to Barron’s, the firm is reducing its workforce by between 5% and 6%. “We are now in the process of sharing organizational changes with employees,” noted a Schwab spokesperson.

Furthermore, the spokesperson assured that the company’s cost-reduction measures are “necessary to ensure Schwab remains a highly competitive and efficient company well into the future.” Of course, Charles Schwab isn’t the only financial firm to enact retrenchment measures in 2023.

Putting this into perspective, Schwab probably needs to take some strong steps to reduce its expenditures. After all, the company has to deal with high interest rates. Some customers are undoubtedly moving money from brokerage accounts to money market funds. Known as “cash sorting,” this is an ongoing problem for brokerages like Charles Schwab.

Besides, Barron’s already reported back in August that Schwab planned to “reduce operating expenses by slashing headcount and closing or downsizing some corporate offices.” In other words, the Charles Schwab layoffs might be necessary and ought to have been expected by now.

Should Investors Worry About This?

I don’t recommend losing sleep over the Charles Schwab layoffs. SCHW stock is firmly in the green today. Clearly, the market isn’t panicking about these cost-cutting steps.

So, investors can feel free to maintain their share positions in the company. More broadly, stock market traders don’t have to make any drastic adjustments to their portfolio strategies. In the end, Charles Schwab and the U.S. economy will probably be fine.

On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.