On Friday, Royal Bank of Canada (RBC), the country’s largest lender, initiated layoffs within its technology and operations teams, according to Reuters, citing sources. These job cuts are a direct result of the organizational restructuring that followed the C$13.5 billion acquisition of HSBC’s Canadian operations last year. The exact number of affected employees remains undisclosed, and it is currently uncertain if further layoffs will occur.

The restructuring began last summer when RBC divided its personal and commercial banking business into two separate segments and reshuffled its senior leadership team. This was in response to the integration of HSBC Canada’s operations. An RBC spokesperson stated that these changes necessitated some difficult decisions, resulting in the departure of some colleagues. The bank has extended support and assistance to the individuals impacted by these layoffs.

RBC’s spokesperson emphasized that the changes are intended to leverage the bank’s global scale, streamline operations, and promote leaders who will drive client-focused growth. As of January 31, RBC had 94,624 full-time employees, marking a 5% increase from the previous year, largely due to the HSBC acquisition.

In a related financial update, RBC revealed that its CEO Dave McKay’s compensation for 2024 has been significantly increased by 60% to C$24.5 million ($17.14 million), which includes a C$4 million bonus tied to the HSBC Canada acquisition. This deal represents the largest in RBC’s history, as noted in a regulatory filing on Thursday.

Sources indicated that some of the layoffs occurred at RBCx, the bank’s tech and innovation banking arm, which is a part of the affected tech and operations team. The move comes as RBC continues to integrate and refine its operations post-acquisition.

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