Charles Schwab Corp. is cutting about 600 jobs as it deals with the impact of lower interest rates.

Chief Executive Walt Bettinger discussed the coming layoffs, which would amount to roughly 3% of the San Francisco brokerage’s staff, in a recent town hall with some employees, according to an attendee. The cuts are part of an effort to rein in expenses as falling interest rates pinch profit at Schwab’s banking arm, said people familiar with the situation.

“We...