Hello,
Welcome to the ehealthforum. I am glad to help you out. Schizophrenia can cause nerve damage and disconnections in the pathways that carry brain chemicals. Tests had proved that blood flow was lower in frontal regions in schizophrenic patients but now some studies have found the hippocampus, limbic system and amygdala to be reduced in volume.
However medications used for schizophrenia can also cause brain shrinkage over time. So whether there is any wasting away of the brain or not is still under research.
I sincerely hope that helps. Take care.