Edward D. Jones & Co. has reduced its number of branch offices by nearly 5 percent, dropping from almost 16,000 to just under 15,200 in the past year, according to an annual filing. Despite the contraction, the firm's advisor headcount grew by 5 percent, reaching 20,125.

AdvisorHub reports that the firm attributes the shift to its push for multi-advisor offices and teaming arrangements, rather than a cost-cutting effort. A company spokesperson emphasized that the reduction in physical branches is intentional and separate from its advisor growth strategy.

As of 2023, Edward Jones made co-locating and teaming options available to its entire advisor roster. According to AdvisorHub, by October, 2024, nearly 15 percent of its advisors opted to share office space or work in teams.

CEO Penny Pennington previously told Barron's that branch locations could decline by 10 percent over two years, though she insisted the firm was not actively engineering the reduction. At the same time, Edward Jones is expanding into urban markets, including the planned opening of a New York City hub office this year. According to AdvisorHub, the firm acknowledged in its annual report that higher rent costs in urban locations could impact profitability.

Despite the branch office reductions, Edward Jones' total lease costs increased by 3.5 percent last year, reaching $418 million. Advisor Hub reports that the firm typically rents branch offices on five-year terms, with approximately 12 percent of its leased space coming directly from its advisors.

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