RBC planning to slash more jobs after trimming workforce in May

After cutting its workforce by approximately one per cent in May, Canada’s biggest bank is planning to pull out the axe again.

In its Q3 2023 earnings release, Royal Bank of Canada (RBC) said it expects to further reduce its number of full-time equivalent (FTE) employees by approximately one to two per cent next quarter.

“Despite a complex operating environment, our Q3 results exemplify RBC’s ability to consistently deliver solid revenue and volume growth underpinned by prudent risk management,” CEO Dave McKay said in the release.

“We remain focused on executing on our cost reduction strategy while leveraging our strong balance sheet and diversified business model to support our growth and bring long-term value to our clients, communities and shareholders.”

According to news outlets, including CBC News, McKay told analysts in May that the bank over-hired in recent months.

“Honestly, we overshot — we overshot by thousands of people.”

RBC claims on its website that it employs more than 97,000 full-time and part-time workers.

Major layoffs continue

The potential reduction at RBC comes after several major North American companies have announced sweeping layoffs in 2023.

Big names, including Ross Video, Dell, Discord, Telus, Microsoft, Ritual, Meta, and BMO, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

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How does this impact employees?

RBC’s plans to pull out the layoff axe once again has left many employees uncertain about their future. If you’ve been laid off or are facing termination, here’s what you should know:

• You Are Likely Owed Severance: Employees at RBC are entitled to full severance pay under Canadian employment law.
• What Severance Includes: Severance packages can cover salary, bonuses, commissions, benefits, and more.
• Rights Don’t Change: Even in times of corporate restructuring, your rights as an employee remain protected.

For a detailed overview of RBC’s layoff history and severance entitlements, visit our RBC Layoffs: Severance Pay for Employees guide.

Key severance facts for RBC employees

If you’ve lost your job due to the closure, here’s what you need to know about severance in Canada:

• Severance Pay: Can be up to 24 months’ pay, depending on your role, age, length of service, and ability to find similar work.
• Deadlines: You have up to two years from your termination date to pursue a claim for severance.
• Misclassified Employees: Contractors may also be eligible for severance if misclassified as independent contractors.

Use our Severance Pay Calculator to estimate what you’re owed.

Steps to take if you’ve been laid off

1. Don’t Sign Anything Yet: Before accepting any severance offer, have it reviewed by an employment lawyer to ensure it’s fair.
2. Understand Your Rights: Learn about severance pay and employment standards through our RBC Layoffs Guide.
3. Contact Us for Help: Book a consultation with our team for a detailed review of your severance package and employment contract.

Talk to an employment lawyer

If you’ve been affected by layoffs at RBC, it’s critical to understand your rights and secure the compensation you’re owed. Contact us today for expert legal advice and a free consultation.

Call 1-855-821-5900 or complete a quick form to get started.