Desjardins to layoff 400 employees
Montreal-based financial services company Desjardins is set to lay off hundreds of employees, reducing its workforce by 0.6% of its 58,000 employees, citing the current economic climate as the reason. The decision to cut staff is attributed to factors like attrition and a more detailed examination of open positions. Despite reporting a healthy profit of $553 million in the second quarter of 2023, up from $515 million the previous year, Desjardins is still working to recover from substantial investments made in recent years, especially in technology.
The majority of these job cuts will affect locations in Quebec, particularly in Montreal and Levis. This move by Desjardins layoffs follows a similar announcement by RBC, which plans to reduce its workforce by 1-2%, despite reporting net income of $3.9 billion in the second quarter. Both companies are striving to balance cost reduction strategies with their commitment to delivering value to their stakeholders in the challenging economic landscape.
Severance pay for Desjardins’s employees
In Canada, non-unionized Desjardins employees and executives are entitled to receive complete severance pay if they lose their jobs due to downsizing or corporate restructuring. The amount of severance pay can vary, potentially reaching up to 24 months’ worth of pay, dependent on various factors. With mass layoffs such as these, sometimes severance pay can be even greater. If employees believe they are not receiving the full amount they are entitled to, they should seek legal counsel to ensure they receive their rightful compensation.
At Whitten & Lublin, we understand that facing job loss or termination can be a stressful and challenging experience. Our experienced employment lawyers can help you navigate your legal options and ensure that you receive the compensation you are entitled to. We encourage anyone affected by the recent layoffs in Canada to contact us for a consultation either online or by phone at (416) 640-2667 today.