Despite Royal Bank of Canada (TSX: RY), the nation’s largest bank, recently exceeded analysts’ expectations for its third-quarter results, it was revealed yesterday that layoffs had begun across its Capital Markets desks.
The decision followed RBC CEO Dave McKay’s announcement in May that the bank would scale back its hiring efforts after unintentionally expanding its workforce by thousands of employees. This continues the bank’s streamlining efforts in its capital markets operations, part of a broader reduction initiative announced in August that may result in over 1,000 job cuts.
In line with this commitment, the bank recently reported a one percent decrease in full-time employees compared to the previous quarter and anticipates further reductions in headcount, ranging from one to two percent.
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As of July 31, the bank employed 93,753 individuals.
Jeff Lanthier, a communications officer at RBC, acknowledged the challenging decision to reduce the team size, emphasizing the bank’s commitment to supporting those affected with fairness and respect throughout this transitional period.
The announcement comes after the bank has successfully secured approval from the Competition Bureau for its planned acquisition of HSBC Canada.
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