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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Termination agreements for RBC employees

In Canada, non-unionized employees at RBC 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.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

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

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

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.

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 severance if it falls short of what you are actually owed.

If you don’t receive 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.