RBC's job cuts are latest sign of strain among Canadian banks

Royal Bank of Canada, the country’s second-largest lender by assets, is cutting about 450 positions — or less than 1% of its total workforce — mostly from head office locations in the Toronto area.

Royal Bank of Canada signage outside a branch.

“We are making changes that focus on the capabilities that we need now and in the future to meet our clients’ evolving needs," the bank said Wednesday in an email. “As always, we consolidate where necessary so that we can reinvest in key areas including digital, data, new technology as well as investment in high-growth business areas."

Canadian banks have announced more than 5,000 job cuts tied to restructurings during the past three years, though the number is probably higher since many announcements, including those by Toronto-Dominion Bank and Canadian Imperial Bank of Commerce, didn’t disclose job figures. The country’s six largest lenders collectively employed about 363,600 workers as of the end of April, including 75,281 at Royal Bank, according to company disclosures.

Royal Bank said it is making “hundreds of changes" including promotions, transfers and the creation of new roles.

The lender is among Canadian firms cutting costs as they they cope with low interest rates, changing customer preferences and a slump in oil prices. Great-West Lifeco Inc., the nation’s second-largest life insurer, said in April that it is slashing 13% of its workforce in the country, or 1,500 jobs, after profits slumped.

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