RBC cutting 450 jobs amid head office reshuffle

Royal Bank of Canada is laying off about 450 staff as the bank undertakes a wider reshuffling of its head offices in the Toronto area.

A bank spokesperson confirmed the changes on Wednesday, saying RBC will "consolidate when necessary" and pour cost savings back into high-priority areas such as "digital, data, new technology as well as investment in high-growth business areas."

‎The bank is also making "hundreds of changes" to personnel that include transfers and promotions, as well as creating new roles and new teams to "focus on the capabilities that we need now and in the future," according to a statement.

Spokesperson Catherine Hudon added that the job losses are in "both business and function roles in the head office." The bank has about 80,000 full-time and part-time employees.

RBC does not expect to record any restructuring charge as a result of the changes.

Cost-cutting is a constant preoccupation at Canada's largest banks, as executives strive to continue to deliver strong returns to investors amid an environment of modest growth in their core domestic businesses.

RBC's profit for the three months ending April 30 rose 9 per cent to $2.8-billion compared with the prior year. At the same time, non-interest expenses – which include salaries and benefits as well as several other costs to the bank – were up 7 per cent year over year, "partially offset by continuing benefits from our efficiency management activities," according to company filings released in May.

‎The bank also said staff who lose their jobs in the shuffle will receive severance packages.