Royal Bank of Canada, the largest lender, has laid off some employees due to changes in its business segments following the C$13.5 billion acquisition of HSBC's domestic business last year. According to two sources familiar with the layoffs, some employees from the technology and operations, personal banking, and commercial banking teams were affected, with layoffs commencing earlier this week. The exact number of employees impacted remains unknown, and it is uncertain if further layoffs will occur.
Last summer, RBC split its personal and commercial banking business into two separate segments and underwent a reorganization after acquiring HSBC Canada. An RBC spokesperson acknowledged the impact of these changes, stating that some colleagues had to leave the bank. The spokesperson emphasized that the bank has offered support and assistance to affected employees.
The spokesperson further explained, "The changes we've made position RBC to leverage our global scale, streamline processes, and enhance our leadership and talent to drive client-centric growth opportunities."
As of January 31, RBC employed 94,624 full-time staff, a 5% increase from the previous year due to the HSBC acquisition. The bank's CEO saw a 60% boost in compensation to C$24.5 million ($17.14 million), including a C$4 million bonus related to the HSBC Canada deal, the largest in RBC's history, as reported in a regulatory filing on Thursday.
In internal communications, commercial banking head Sean Amato-Gauci mentioned that some employees had left the bank post-restructuring. Similarly, personal banking head Erica Nielson noted in a separate memo that some team members had joined from external sources or transitioned to new roles as part of the reorganization. One source specified that some layoffs occurred within RBCx, the bank's technology and innovation banking division under the tech and operations team.