RBC Cuts Jobs in Reorganization Ahead of New ‘Growth Strategy’

Royal Bank of Canada (TSX: RY) has laid off employees across multiple divisions as part of a broader reorganization, according to sources and a statement from the bank.

Canada’s largest lender has cut positions in technology and operations, as well as in its recently separated personal and commercial banking units, according to a source familiar with the matter.

“We have promoted a number of colleagues, expanded responsibilities and made stronger connections across our platforms,” RBC spokesperson Jeff Lanthier told The Globe and Mail in an emailed statement. “With these changes, some difficult decisions have been made and as a result some colleagues were impacted and left the bank.”

The bank did not disclose the number of affected employees.

Lanthier said the changes were unrelated to RBC’s $13.5 billion acquisition of HSBC’s Canadian operations completed last year, a deal that came with regulatory conditions prohibiting layoffs of HSBC Canada’s 4,000 employees within six months of closing, or two years for front-line staff.

Sources familiar with the matter said the bank has laid off some former HSBC Canada employees since September. Additionally, RBC has been reorganizing executive roles in phases since last year, starting with senior management and working down to vice-president, senior director, and director levels this week.

The restructuring comes ahead of RBC’s March investor day, where it plans to present its updated strategic growth plan. Last month, the bank reported a first-quarter profit of $5.13 billion.

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