Bank of Montreal’s drive to improve efficiencies has come with a cost: $357 million, along with the most dramatic job cuts by a Canadian bank in more than 15 years.
“This is a sizable move,” Chief Executive Officer Darryl White said on the call, while announcing earnings that beat analysts’ expectations. “We’re on a new path as far as a continuous improvement of the operating efficiency of the bank and this charge is designed to accelerate that path as we go forward.”
“It is difficult for us to credit good expense control in the face of yet another restructuring charge from this bank, this time approaching $500 million,” CIBC Capital Markets analyst Robert Sedran said in a note to clients. “However, the underlying segment performance was solid with improving volume growth, positive operating leverage and stable credit quality. A decent result.”
Deeper CutThe job cuts are across all areas of the bank and are deeper than previous rounds of reductions, including the elimination of 1,850 jobs, or 4 per cent of the workforce, in May 2016, and the 1,000 positions cut in 2007. The latest move comes about six months after the Toronto-based company pared about 100 jobs across its capital-markets division.
Seems like all industries in Canada are laying people off! CN rail laying 1600 people off, more layoffs in Alberta oil and gas, layoffs in BC lumber and now the banks...Trudeau better have jobs for those folks as public workers
Yay trudeau!
Got to keep those billion dollar profits rolling in, besides who cares about the people losing their jobs half will become suicidal the rest will fall into deep depression and the French Safe will continue making billions it
Don’t journalists have a responsibility to inform the people of the biggest change to the western world since Roman times? Of the removal of democracy and replacing it with Marxism?
Banks always seem to make a fortune, and why not. They nickle and dime us all they can.