RBC Layoffs: Income Growth vs. Workforce Changes

RBC Layoffs: Income Growth vs. Workforce Changes

RBC layoffs more workers. Despite a notable year-on-year rise in net income, the Royal Bank of Canada (RBC) has announced its intention to carry out more layoffs. Anticipating a reduction of 1%-2% in its full-time employee (FTE) count for the upcoming quarter, RBC’s FTE count already decreased by 1% in the last quarter. RBC President and CEO, Dave McKay, stated that despite challenges, Q3 results showcase the bank’s consistent ability to achieve substantial revenue and volume growth through prudent risk management.

The bank’s focus remains on cost reduction, capitalizing on its strong balance sheet, and diverse business model to ensure growth and sustained value for stakeholders. RBC, boasting over 97,000 full- and part-time employees, recently disclosed a net income of $3.9 billion for the quarter ending July 31, 2023—an 8% increase from the previous year. Other prominent companies like Telus, Shopify, Accenture, and Bell Canada have also announced staff cutbacks in recent months.

Severance pay for RBC’s employees

In Canada, non-unionized employees and executives at Spotify are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring. The severance can be as much as 24 months’ pay, depending on several factors. Employees who are not provided with the full amount are entitled to compensation and should seek legal advice to ensure they are receiving what they are owed.

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 deserve. 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.