CIBC Layoffs: 2,400 jobs cut despite rising profit and dividend increase

What’s happening at CIBC?

CIBC has confirmed that it has cut nearly 2,400 jobs, representing about 5% of its full-time workforce, over the past fiscal year. The layoffs were revealed during the bank’s financial results announcement on November 30. Despite showing a healthy profit increase, the job cuts come as CIBC addresses broader financial pressures, including a notable rise in provisions for credit losses.

More details

In its presentation to investors, CIBC reported setting aside $541 million for potential bad loans, marking a 24% increase from last year.

• This move reflects growing caution amidst economic uncertainties, though the figure was slightly below market expectations.
• Despite these cuts, CIBC raised its dividend to 90 cents per share, up from 87 cents, highlighting continued confidence in its long-term profitability.
• The bank’s overall profits rose to $1.48 billion, up from $1.19 billion in the same quarter last year.

Other major banks take similar action

CIBC’s cuts follow similar moves by other major Canadian banks, all facing rising provisions for bad loans as economic uncertainty grows:

• Royal Bank of Canada (RBC): Laid off a large number of employees, and set aside $720 million for bad loans, an 89% increase from last year.
• TD Bank: TD Increased provisions to $878 million, a 42% year-over-year jump, and announced over 3,000 job cuts (3% of its workforce).
• Scotiabank: Earlier in the week, Scotiabank revealed $1.3 billion in provisions for potentially soured loans, along with a 3% cut to its workforce.

Your rights

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

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.