The Royal Bank of Canada (TSX:RY) (RBC) has commenced a series of layoffs in its capital markets division as part of a larger downsizing strategy, which was announced in August and could potentially impact over 1,000 employees. The decision is an attempt to adapt to the prevailing challenging economic conditions.
This week, several employees have exited the bank, including Lawrence McKean, an asset-backed securities trader, and Diana Di Luca, a preferred share and convertible bond trader, both based in Toronto. Other departures include Melissa Primrose, a leveraged finance salesperson from New York, and Miles Kirkwood from Vancouver. The information was provided by sources who requested anonymity.
In August, RBC had disclosed plans to reduce its full-time equivalent staff by up to 2% in the upcoming quarter. This move came in response to a significant surge in expenses that negatively affected the bank's third-quarter results. As of July 31, RBC had 93,753 employees on its payroll. The non-interest expenses for the fiscal third quarter escalated by 23% to $7.86 billion (US$5.84 billion), surpassing the average estimate of $7.31 billion compiled by Bloomberg analysts.
Jeff Lanthier, a communications officer at RBC, confirmed the bank's decision to decrease its team size by one to two percent in the current quarter. He underscored that this approach was not common practice for RBC and reassured that the bank would offer fair and respectful support for those affected during this transition period.
To date, neither McKean, Di Luca, Primrose nor Kirkwood have responded to requests for comment regarding their departure from the bank.
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