National Bank of Canada (National Bank), the country’s sixth-largest bank, has announced that it’s cutting several jobs in its capital markets business, according to sources familiar with the situation.
Overview of layoffs
In an effort to restructure and manage its business needs and priorities effectively, National Bank has slashed staff within the equity research and sales and trading divisions. The specifics of the job cuts, such as the number of positions eliminated, have not been disclosed.
Marie-Pierre Jodoin, a spokesperson for the Montreal-based bank, made a brief statement regarding the changes, referencing “a few adjustments to our Financial Markets structure based on the ongoing assessment of business needs and priorities.”
Trend of job cuts across Canadian banks
The job cuts at National Bank come at a time when several other Canadian lenders are also reducing workforce sizes, totalling at least 6,000 layoffs across various banks. Prominent names like Bank of Montreal (BMO), Royal Bank of Canada (RBC), and Bank of Nova Scotia (Scotiabank) have also announced significant layoffs, accounting for two to three per cent of their respective workforces.
For the past three years, Canada’s large banks managed to avert massive job cuts. However, facing several revenue and capital pressures recently, banks are exploring avenues to minimize expenses. This restructuring and job cut trend seems to align with banks’ strategies to conclude their fiscal years on a streamlined note by the end of October.
Termination agreements for National Bank employees
In Canada, non-unionized employees at National Bank are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business. This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.
People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors. Severance can be as much as 24 months’ pay, depending on a number of factors.
Source: Samfiru Tumarkin