Manulife Layoff 2.5% of its workforce

Manulife Investment Management made a significant announcement today, revealing a strategic workforce reduction of 250 positions on a global scale. This targeted downsizing is specifically impacting Manulife’s offices in the United States, Canada, the United Kingdom, and Asia. According to insights from Yahoo! Finance, these job cuts amount to approximately 2.5% of Manulife Investment Management’s overall workforce.

Why is Manulife laying off employees?

Contrary to conventional expectations, these layoffs come on the heels of a robust third-quarter performance for Manulife. The company experienced substantial business growth, particularly in the Asian market, with core earnings soaring by an impressive 28% to $1.74 billion, surpassing initial estimates.

CEO Paul Lorentz addressed the workforce in a memorandum initially reported by Ignites, shedding light on the rationale behind the decision. He emphasized the challenges faced by asset managers in navigating prolonged market volatility and, notably, the emergence of a higher-for-longer interest rate market cycle-a phenomenon not witnessed in the past 15 years.  This move by Manulife aligns with a broader trend in the Canadian financial sector, where several major firms have implemented substantial staff reductions.

Severance pay for Manulife’s employees

In Canada, non-unionized employees and executives at Manulife have the right to receive complete severance pay in the event of job loss due to downsizing or corporate restructuring. The actual amount of severance pay is subject to variation and can potentially extend up to 24 months of pay, depending on various factors. In instances of extensive layoffs like the present situation, the severance pay might be even more substantial. If employees suspect they are not receiving their full entitled amount, it is advisable to seek legal advice to ensure they secure the compensation rightfully owed to them.

At Whitten & Lublin, we recognize that dealing with job loss or termination is a stressful and complex ordeal. Our seasoned employment lawyers are available to assist you in understanding your legal avenues and to guarantee you receive the compensation you deserve. We encourage those affected by the recent layoffs in Canada to reach out for a consultation, either online or by phone at (416) 640-2667, to discuss their situation today.