Royal Bank of Canada (RBC), Canada’s largest financial institution, has initiated layoffs following its C$13.5 billion acquisition of HSBC’s Canadian operations last year, according to insider sources who informed Reuters. These workforce reductions are part of broader organizational changes aimed at streamlining operations.
Reports indicate that layoffs are affecting RBC’s technology and operations teams, with changes commencing earlier this week. However, the exact number of employees impacted remains undefined. The restructuring follows RBC’s division of its personal and commercial banking segments into distinct entities last summer, an adjustment accompanied by a revamp of senior leadership roles.
RBC spokesperson confirmed the layoffs, stating, “With these changes, some difficult decisions have been made and as a result some colleagues were impacted and left the bank.” They added that RBC is offering support to those affected. The bank emphasizes that the restructuring aims to leverage RBC’s global reach, enhance operational simplicity, and position it to seize growth opportunities focused on client needs.
The bank’s strategic overhaul includes significant financial adjustments. RBC reported a 5% increase in full-time staff, reaching 94,624 employees by January 31, largely due to the HSBC acquisition. Additionally, RBC has increased CEO Dave McKay’s salary by 60% to C$24.5 million for the year 2024, with a C$4 million bonus associated with this acquisition – the largest in RBC’s history.
RBCx, the technology and innovation banking unit, is one of the segments experiencing layoffs, as confirmed by one source. These developments represent RBC’s ongoing efforts to integrate HSBC’s domestic business effectively while adjusting its internal structure.
RBC’s recent layoffs highlight the complexities of integrating a major acquisition like HSBC Canada and underscore the bank’s efforts to streamline operations and focus on growth. These changes, though challenging, are part of RBC’s broader strategy to enhance its market position and operational efficiency.
