(Adds details on layoffs, reorganization in paragraphs 2, 9-10)
TORONTO, March 7 (Reuters) – Royal Bank of Canada , Canada’s largest lender, laid off some employees as a result of changes at its business segments following the C$13.5 billion acquisition of HSBC’s domestic business last year, two sources with direct knowledge of the layoffs told Reuters.
Some of the layoffs were at the technology and operations, personal banking and commercial banking teams and began earlier this week, the sources said, requesting anonymity.
It was unclear how many employees were impacted or if layoffs would continue.
RBC separated its personal and commercial banking business last summer into two standalone segments and reorganized its senior leadership after the HSBC Canada acquisition.
“With these changes, some difficult decisions have been made and as a result some colleagues were impacted and left the bank,” an RBC spokesperson said, adding that the bank has provided support and assistance to those affected.
“The changes we’ve made better position RBC to take advantage of our global scale, simplify how we work and elevate the leaders and talent who will shape our client-focused growth opportunities,” the spokesperson said.
The lender had 94,624 full-time employees as of January 31, a 5% increase from a year ago due to the HSBC acquisition.
RBC boosted CEO Dave McKay’s 2024 salary by 60% to C$24.5 million ($17.14 million), including a C$4 million bonus related to the HSBC Canada acquisition, the biggest deal in RBC’s history, according to a regulatory filing on Thursday.
A memo by commercial banking head Sean Amato-Gauci on Thursday seen by Reuters noted that some employees had left the bank after the changes.
Personal banking head Erica Nielson in a separate memo said several team members had joined from outside of the business segment or are moving to new roles as a part of the reorganization.
Some of the layoffs were at RBCx, the lender’s tech and innovation banking arm that is part of the tech and operations team, one source said. (Reporting by Nivedita Balu in Toronto; Editing by Caroline Stauffer, Chizu Nomiyama and Mark Porter)
