'We remain focused on our cost reduction strategy while leveraging our strong balance sheet and diversified business model'
The Royal Bank of Canada (RBC) has warned of further layoffs despite a major year-on-year increase in its net income.
The employer expects to further reduce its full-time employee (FTE) count by 1%-2% next quarter.
The RBC FTE count was down 1% from last quarter.
"Despite a complex operating environment, our Q3 results exemplify RBC's ability to consistently deliver solid revenue and volume growth underpinned by prudent risk management,” says Dave McKay, RBC president and CEO.
“We remain focused on executing on our cost reduction strategy while leveraging our strong balance sheet and diversified business model to support our growth and bring long-term value to our clients, communities and shareholders."
RBC on its website claims it has more than 97,000 full- and part-time employees.
The announcement came after RBC recorded net income of $3.9 billion for the quarter ended July 31, 2023, up $295 million or 8% from the prior year.
Telus, Shopify, Accenture and Bell Canada have also announced workforce reductions in the previous months.
Termination agreements for RBC employees
In Canada, non-unionized employees at RBC are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business, says Lior Samfiru, national co-managing partner at law firm Samfiru Tumarkin.
“This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.,” he said.
“In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer. Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.”
In March, RBC asked employees to report to the office at least three times a week.