Royal Bank of Canada has laid off around 30 senior executives since September as part of an ongoing restructuring following its acquisition of HSBC Canada, The Logic has learned.
Royal Bank of Canada has laid off around 30 senior executives since September as part of an ongoing restructuring following its acquisition of HSBC Canada, The Logic has learned.
Royal Bank of Canada has laid off around 30 senior executives since September as part of an ongoing restructuring following its acquisition of HSBC Canada, The Logic has learned.
Canada’s largest bank also plans to lay off lower-level employees as part of the reorganization in early 2025, two people familiar with the matter said.
Talking Points
RBC made the executive layoffs in separate rounds, starting with executive vice presidents and senior vice presidents, then vice presidents in subsequent weeks, according to two sources. The Logic has agreed not to name the sources because they are not authorized to speak publicly.
In an emailed statement to The Logic, Jeff Lanthier, director of media relations at RBC, said the bank has “continued to position ourselves for the next phase of growth” since announcing key executive and organizational changes in the summer.
“With these changes, some difficult decisions have been made and as a result some colleagues were impacted and left the bank,” Lanthier said, adding that a number of employees were also promoted and given expanded mandates.
Lanthier declined to share further details on the personnel changes.
Sources told The Logic that the eliminated roles have affected various parts of the bank, with one detailing cuts to RBC’s insurance and capital markets departments.
About half of executives in the Canadian lines of business have been moved or promoted to new positions, three sources said.
The restructuring comes after RBC’s $13.5-billion acquisition of HSBC’s Canadian operations, which closed in late March. In announcing the completion of the deal, RBC said it would integrate 4,500 HSBC Canada employees.
In July, RBC announced it planned to split its personal and commercial banking segment into two groups. In a release, the bank cited its “growing base of commercial clients,” and named five executives to new positions. Group heads were named for its wealth management, personal banking, insurance and commercial banking arms, and a new deputy chair was also appointed.
The company’s recent layoffs are part of its strategy to “reenergize” the business, one of the sources said.
“The changes we’ve made better position RBC to take advantage of our global scale,” Lanthier wrote.
Global consulting firm Boston Consulting Group has been advising RBC on the restructuring, according to two sources.
RBC has 97,000 employees across 29 countries, according to its website.
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