RBC cuts 30 senior executives amid HSBC Canada integration and restructuring

What’s Happening at Royal Bank of Canada?

Since September 2024, Royal Bank of Canada (RBC), Canada’s largest bank, has laid off approximately 30 senior executives as part of an ongoing restructuring effort. These layoffs are tied to the bank’s integration of HSBC Canada, following RBC’s acquisition of the subsidiary earlier this year.

The restructuring primarily involves high-level roles, with further organizational changes reportedly under consideration. While RBC has not issued an official statement confirming the layoffs, sources familiar with the situation have shared insights with The Logic, highlighting the strategic nature of these decisions.

Market Context

• HSBC Canada Acquisition: RBC’s $13.5 billion acquisition of HSBC Canada closed earlier in 2024, marking the largest banking deal in Canadian history. The integration of HSBC Canada’s operations is expected to involve substantial cost-cutting and efficiency measures.
• Restructuring Strategy: RBC’s executive layoffs are believed to be part of its efforts to streamline operations and address overlapping roles resulting from the acquisition.
• Industry Trends: Canadian banks face increased competition and market pressure as they adapt to changing interest rates and economic uncertainties.

Broader Context:

RBC’s integration of HSBC Canada is projected to achieve $740 million in annual cost savings by 2026, according to earlier estimates. However, these changes come with significant human costs, particularly at the executive level.

What’s next for RBC executives?

If you’ve been affected by the layoffs at RBC, understanding your legal rights is crucial. Non-unionized employees in Canada’s banking industry 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.

Talk to an employment lawyer

If you’ve been affected by RBC’s 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.