National Bank said the charge will be applied on Dec. 2, the day they release its fourth-quarter results. This will be the bank’s second restructuring in about a year.
Digital disruption is upon us during exponential times. National Bank of Canada to cut 600 jobs, embrace digital era Schotter (@andreasschotter) October 27, 2016
The move comes amid banks adjusting to the environment for retail banking. The industry has been beset by a combination of slow economic activity and a shift in consumer behaviour. Banking customers have been using mobile banking apps more and more, and they have been visiting branches less. As a result, cost-cutting measures and layoffs have been made within the industry.
Aside from cutting 600 jobs over the next year, National Bank of Canada will offer early retirements or other positions to around 300 of its workers. More than half of the job losses will be in Quebec, where National Bank’s based is located. The rest of the job losses will be scattered across the country.
As a result of restructuring, National Bank is expected to save around C$125 million per year. At the same time, the bank is looking to fill over 500 positions, mainly in IT functions, sales and service.
Louis Vachon, National Bank of Canada Chief Executive Officer, said the shift to a digital economy offers tangible growth opportunities for the company. Vachon added that the company must remain agile and efficient in meeting their clients’ expectations.
