Questrade announces strategic layoffs amid November 2024 restructuring

What’s happening at Questrade?

On November 29, 2024, Questrade, a leading online brokerage firm headquartered in Toronto, announced significant layoffs as part of a strategic restructuring effort. While the company has not disclosed to the Canadian Press the number of affected employees or specific roles, departments such as customer service, technology, and compliance have been impacted.

Questrade emphasized that the cuts are not due to financial instability but rather reflect a long-term business strategy to maintain competitiveness in Canada’s increasingly crowded financial services industry. Reports suggest that employees at the Toronto headquarters, as well as other offices across Canada, may be affected by these changes.

Official statements and market context

Strategic Realignment: In an official statement, Questrade emphasized that its business remains “healthy” and that the layoffs are part of a “strategic realignment” to sustain its competitive edge.

• Major banks are introducing no-commission trading platforms and low-cost robo-advisors, increasing competition for Questrade.
• Competitor Wealthsimple has grown rapidly, managing over $50 billion in assets by 2023, up from $6 billion in 2019.
• Questrade has seen significant growth in recent years, with assets under administration rising to over $60 billion from $9 billion just five years ago. Despite this, maintaining market share in Canada’s online investing space remains a challenge.

What’s next for Questrade employees?

If you’ve been affected by the layoffs, understanding your legal rights is crucial. Non-unionized employees in Canada are entitled to severance pay based on factors such as their role, tenure, and ability to find similar work. Here’s what you need to know:

• Compensation: Severance packages may include up to 24 months’ pay, as well as bonuses, commissions, and benefits.
• Deadlines: You generally have up to two years to review and negotiate severance offers.
• Action Steps: Consult an employment lawyer to ensure your severance package is fair and aligns with Canadian employment laws.

Major layoffs in 2024: Industry-wide impact

Questrade’s announcement reflects a broader trend of workforce reductions across Canada. Other major layoffs this year include:

• Salesforce: Cut hundreds of jobs following its own restructuring.
• Kinaxis: Announced layoffs for the second time in 2024, citing market challenges.
• AMD: Laid off 4% of its workforce after mixed third-quarter earnings.
• Avaya: Recently initiated layoffs in response to declining revenue streams.

These layoffs reflect significant adjustments in the tech and financial sectors as companies adapt to shifting economic conditions.

Talk to an employment lawyer

If you’ve been affected by Questrade’s November layoffs, our experienced team at Samfiru Tumarkin LLP can help. We specialize in reviewing severance packages, negotiating fair compensation, and ensuring your rights are protected.

Call us today at 1-855-821-5900 or or request a consultation online.