Is RBC Quietly Letting Employees Go?
Unverified reports of layoffs at Royal Bank of Canada (TSX: RY) have emerged on social media, with some individuals claiming they received sudden termination calls. Comments on Reddit suggested that terminations were taking place at RBC Insurance.
One user claimed, “I was laid off today after working at RBC Insurance for a little over two years. How much severance can I expect?”
These accounts remain unconfirmed by official statements, but they have caused a stir among both RBC staff and the wider public. The bank has not released any new comment regarding the recent wave of allegations.
However, the bank had previously acknowledged restructuring efforts earlier this month. RBC spokesperson Jeff Lanthier stated, “With these changes, some difficult decisions have been made and as a result some colleagues were impacted and left the bank,” while also explaining that the reorganization involved promoting certain employees and expanding responsibilities across different platforms.
The country’s largest lender has been in the midst of a strategic shift for some time. It reorganized multiple divisions, including technology, operations, and personal and commercial banking, shortly before unveiling an updated growth strategy. Some of the bank’s actions appear to coincide with its ongoing effort to streamline roles after completing a high-profile acquisition of HSBC Canada last year for $13.5 billion.
RBC has maintained that any layoffs are unrelated to the deal, noting regulatory conditions that prohibit reducing HSBC Canada’s workforce within specific time frames.
Despite those assurances, sources suggest that a limited number of former HSBC Canada employees may have been let go as early as September. RBC also indicated it has been reorganizing executive positions in phases since last year, affecting everyone from senior management to directors.
Most recently, the bank reported a first-quarter net income of $5.13 billion, and it is expected to present more details of its strategic growth plan at an upcoming investor day.
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