BMO Capital Markets cutting 4% of staff, Canadians affected

Bank of Montreal (BMO) is pulling out the axe as it grapples with slower trading and investment banking activity.

According to news outlets, including The Globe and Mail, BMO is reducing its capital markets division by approximately four per cent, or more than 100 employees.

While the layoffs will affect staff globally, people familiar with the matter claim that around half of the roles being cut are located in Canada.

“We are focused on managing expenses dynamically, growing revenue, and improving our relative efficiency ratio; which includes aligning our resources to achieve these priorities,” BMO spokesperson Kelly Hechler told multiple outlets in an email.

“We are working closely with affected employees to provide support and to ensure they are treated with fairness and respect.”

The bank’s capital markets division employs a total workforce of more than 2,800 people, according to The Globe.

Major layoffs continue

BMO joins the growing list of major North American companies that have announced sweeping layoffs in 2023.

Several big names, including Loblaw, Ford, Ritual, Goldman Sachs, Suncor Energy, Meta, and LinkedIn, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

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Termination agreements for BMO employees

In Canada, non-unionized employees and senior executives working at BMO are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance pay for federally regulated employees
• Rights to severance for provincially regulated employees
• Severance packages in mass layoffs

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.