RBC Reportedly Lays Off Employees Following Restructuring and HSBC Canada Acquisition
Royal Bank of Canada (RBC) has initiated employee layoffs as part of a broader organizational restructuring tied to its recent C$13.5 billion ($9.4 billion) acquisition of HSBC’s Canadian operations, according to a Reuters report. The restructuring, which began in July 2024, split RBC’s personal and commercial banking divisions into standalone segments and reshuffled senior leadership to streamline decision-making and prioritize client-centric growth.
The layoffs impacted roles within the technology and operations, personal banking, and commercial banking teams, though the exact number of affected employees remains undisclosed. Sources indicate cuts also occurred at RBCx, the bank’s tech and innovation division. RBC’s workforce grew 5% year-over-year to 94,624 full-time employees as of January 31, 2025, largely due to integrating HSBC Canada’s staff.
Internal memos from commercial banking head Sean Amato-Gauci and personal banking leader Erica Nielson acknowledged departures and role transitions, with Nielson noting new hires and internal shifts as part of the reorganization. An RBC spokesperson stated the changes involved “difficult decisions” but positioned the bank to leverage its global scale and simplify operations.
Despite the layoffs, RBC posted strong financial results for the quarter ending January 31, 2025, with revenue climbing to C$16.73 billion from C$13.48 billion a year earlier. Net income surged 43% to C$5.1 billion, including a C$214 million contribution from HSBC Canada. The bank emphasized its focus on strategic growth while navigating post-acquisition integration challenges.
Source: Retail Banker International, Reuters, RBC Financial Reports
