Exclusive-Canada’s RBC lays off some employees related to HSBC acquisition, sources say

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By Nivedita Balu

TORONTO (Reuters) – Canada’s largest lender Royal Bank of Canada laid off some employees as a result of changes at its business segments following the C$13.5 billion acquisition of HSBC’s domestic business last year, two sources with direct knowledge of the layoffs told Reuters.Some of the layoffs were at the technology and operations teams and began earlier this week, the sources said, requesting anonymity.

It was unclear how many employees were impacted or if layoffs would continue.

Last summer RBC separated its personal and commercial banking business into two standalone segments and rejigged senior leadership, after the HSBC Canada acquisition.

“With these changes, some difficult decisions have been made and as a result some colleagues were impacted and left the bank,” RBC’s spokesperson said, adding that the bank has provided support and assistance to those affected.

“The changes we’ve made better position RBC to take advantage of our global scale, simplify how we work and elevate the leaders and talent who will shape our client-focused growth opportunities.”

The lender had 94,624 full-time employees by January 31, a 5% increase from a year ago due to the HSBC acquisition.

RBC boosted CEO Dave McKay’s 2024 salary by 60% to C$24.5 million ($17.14 million), including a C$4 million bonus related to the HSBC Canada acquisition, the biggest deal in RBC’s history, according to a regulatory filing on Thursday.

Some of the layoffs were at RBCx, the lender’s tech and innovation banking arm that is part of the tech and operations team, one source said.

(Reporting by Nivedita Balu in Toronto; Editing by Caroline Stauffer and Chizu Nomiyama)