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September 30, 2022

Royal Bank of Canada slashes 1% jobs in US investment banking unit

Royal Bank of Canada (RBC) has laid off 1% of its workforce in its US-based investment banking division, reported Bloomberg citing people familiar with development.

The cuts at RBC’s Capital Markets unit included employees working in junior positions, unnamed people told the publication.  

According to one of the sources, the layoffs have been carried out as part of the bank’s usual annual practice.

The latest reduction accounts for nearly 10 jobs in the Capital Markets arm, stated a Reuters report.

It comes shortly after bank announced the conclusion of its deal to buy British wealth manager Brewin Dolphin for £1.6bn.

A spokeswoman from RBC was quoted by Bloomberg as saying: “We can confirm that we made minimal cuts to our US investment-banking business which were in line with our normal attrition.”

However, the bank intends to embark on an aggressive recruitment drive for senior roles, a person privy to the matter told the agency.

Early this year, RBC Capital Markets CEO Derek Neldner informed about the bank’s plan to recruit equal number of managing directors as previous year, after adding 25 such positions into its fold.

The lender’s activities in the US focus on retail banking, capital markets as well as wealth management and treasury services.

In Q3 2022, RBC’s capital markets business posted C$479m ($350m) in net income, a fall of 58% compared to the previous year.

The drop in income has been mostly driven by the effect of loan underwriting concessions of C$385m in the US.  

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