Questrade cuts hundreds of jobs amid strategic restructuring and increasing competition

What’s happening at Questrade?

Questrade, one of Canada’s leading online brokerage firms, has announced layoffs affecting an undisclosed number of employees. While the company has not provided details on the specific roles or locations impacted, it has clarified that the decision aligns with its business strategy and does not reflect any underlying financial challenges. Many affected employees have already contacted Samfiru Tumarkin LLP to review their severance packages and understand their rights under provincial employment laws.

Founded in 1999 by CEO Edward Kholodenko, Questrade has grown significantly, boasting over $60 billion in assets under administration—up from $9 billion five years ago.

Official statements and context

• Questrade stated that the layoffs are a strategic move rather than a reflection of its business health, which remains “healthy.”
• The company positions itself as a leader in low-cost online investing in Canada, but it is facing heightened competition, particularly as major banks introduce no-commission trading platforms and low-cost robo-advisors.
• Competitor Wealthsimple, a prominent player in the online investing space, has also seen rapid growth. Wealthsimple’s assets under administration surged from $6 billion in 2019 to over $50 billion in 2023, underscoring a competitive market landscape.

Employee support and next steps

Non-unionized employees affected by layoffs may be eligible for severance pay, which is determined by several factors, including role, tenure, and age.

Key facts about severance:

• Severance Pay: Can include up to 24 months’ pay in some cases, depending on specific circumstances.
• Components: Severance packages may include salary, bonuses, commissions, and other forms of compensation. Use our free Severance Pay Calculator to estimate what your package may look like.
• Deadlines: Employees have up to two years from their termination date to review and negotiate severance entitlements.
• Need guidance? Contact Samfiru Tumarkin LLP for a severance review and expert advice.

Employees affected by the layoffs at Questrade can find additional details about their rights and options in our Questrade Layoffs: Severance Pay for Employees resource.

WATCH: Employment lawyer Lior Samfiru explains general severance rights on an episode of the Employment Law Show.

Major layoffs in 2024: Industry-wide impact

The Questrade layoffs come amid broader trends in Canada’s employment market, with notable companies like Salesforce, Kinaxis, AMD, and Avaya also announcing workforce reductions as companies adjust to shifting economic challenges.

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

Talk to an employment lawyer

If you are facing job loss, contact Samfiru Tumarkin LLP to explore your options. Our experienced team can provide guidance on termination issues, severance packages, and workplace rights.