RBC lays off some employees as it reorganizes its businesses

Royal Bank of Canada RY-T has let go of some employees as the lender reorganizes its businesses and prepares to launch its new growth strategy after closing its $13.5-billion takeover of HSBC Bank Canada last year.

This week, the bank has shed employees in technology and operations, as well as in its personal and commercial banking units, but layoffs have also occurred in other areas, according to a source.

The changes come ahead of RBC’s investor day scheduled for late March, when it will present its updated strategic growth plan to investors. In August, RBC also separated its personal and commercial banking business into separate units.

Since September, the bank has laid off some former HSBC Canada employees, according to two other sources. The Globe and Mail is not identifying the sources because they are not authorized to speak publicly about the layoffs. RBC spokesperson Jeff Lanthier said in an e-mail statement that the changes position the bank for its “next phase of growth.”

”We have promoted a number of colleagues, expanded responsibilities and made stronger connections across our platforms,” Mr. Lanthier said. “With these changes, some difficult decisions have been made and as a result some colleagues were impacted and left the bank.”

RBC did not disclose the number of employees that were affected by the layoffs.

The bank has been reorganizing the roles and responsibilities of its executives. In recent months, it has made changes in layers, starting from the most senior executives and working its way to the lower levels, according to two of the sources. This week, the bank rearranged jobs at its vice-president, senior director and director levels – the final phase of the executive shakeup.

When RBC closed its acquisition of HSBC Canada in April, there was some overlap with existing roles at Canada’s largest lender. Even now, some former HSBC employees still have not received clarity or guidelines on their roles at the bank. On Thursday, RBC published its proxy circular, which discloses executive compensation.

Chief executive officer Dave McKay was awarded $26-million last year, a 60-per-cent raise from his prior-year compensation of $16.13-million in 2023. Part of the 2024 stock award was a special grant in December valued at $4-million in recognition of RBC’s acquisition and integration of HSBC Canada, which was the country’s seventh-largest lender. RBC’s net income jumped 11 per cent to $16.2-billion in 2024.