Job layoffs across the banking industry have been making headlines in recent weeks, but what exactly is driving the cuts, and where are things headed?
Just last week, and Scotiabank announced it would cut three per cent of its global workforce, or around 2,700 staff.
In September, the Royal Bank of Canada (RBC) made a round of job cuts in its capital market operations, with plans to cut two per cent of its full-time equivalent staff in the coming quarter. The bank had 93,753 employees as of July 31.
But the rationale behind the layoffs isn't necessarily the same for all institutions.
For instance, Scotiabank says bank digitization, automation, streamlining efforts and shifting consumer preferences are driving its layoffs. Meanwhile, RBC's planned cuts come as a cost-saving strategy following the weight of high expenses in the third quarter.
Coming amid a year of high inflation, the layoffs are likely a domino effect of the aggressive interest rate hikes from the Bank of Canada, according to Jay Zhao-Murray, FX analyst at Monex Canada, a commercial foreign exchange firm.
"In the face of consumers spending less, you've got firms that have this weaker sales outlook, so they've decided to slow their employment intentions, as well as cut back on investments," Zhao-Murray said in a phone interview with CTVNews.ca.
"When you take a look at banks, you have this weak demand, especially in interest-rate sensitive goods, and that affects loans. On the business side, there are reduced investments. All of these things come together to weigh on profitability."
Despite the recent layoffs, he's doubtful these job losses will be permanent.
"It really is a cyclical thing. We're at the tail end of the economic cycle in Canada. With slowing demand, there's a greater potential for a recession next year," he said.
"It's just more or less the normal swings that come in the business cycle. Even though profitability has been eroded, companies are still earning a higher rate of profit now than they were during the entire five-year period preceding the pandemic," Zhao-Murray added. "With the higher profits, firms don't necessarily need to fire workers and I don't think they want to."
Following the firing-and-hiring challenges during the pandemic, firms are now trying to hoard labour and not make layoffs until absolutely necessary, he adds.
And according to Nita Chhinzer, associate professor in human resource management and business consulting at the University of Guelph, layoffs were often used in the past as a result of firms experiencing declines, such as a loss of customers or profit.
But today, layoffs are often used by employers who are reporting profit.
"Instead of training and developing employees, some employers use layoffs as a tool to change the skills composition of their workforce, since it is quicker than training and redeploying employees," Chhinzer told CTVNews.ca in an email.
For the banking industry, factors such as rising interest rates and less than favourable third-quarter results are leading to cuts to the workforce.
For instance, the bad debt provisions of Bank of Montreal (BMO) more than tripled to $492 million by the end of July 2023, compared to 2022.
And the quickly changing banking environment may be contributing to the recent uptick in layoffs, Chhinzer said.
"The move from in-person to online support shifts the skills needed from workers. Clients require 24-7 access and response, meaning everyone from customer service to tech support needs to shift when they work. Improvements in AI and chatbots requires fewer workers for some types of jobs," she said. "I expect that we will see more layoffs as banks continue to evolve to their internal and external pressures."
Chhnizer also has some advice for improving job security.
"The shift has occurred where employees are increasingly responsible for their own career outcomes and I highly recommend that people keep active with keeping their skills and competencies up to date," she said.
"Whether it's free courses from edX, Coursera, or Class Central, or microcredentials from LinkedIn or Microsoft, keeping your skills current and communicating that to your employer is one way to signal that you are adaptable and transferable for other roles."
Canada will lower the number of permanent immigrants it allows into the country by at least 20 per cent from its previous target of 500,000, 愛污传媒 confirmed Wednesday.
Prime Minister Justin Trudeau says the Liberal party is 'strong and united,' despite efforts from within his caucus to oust him as leader.
The Bank of Canada made a sizable cut to its key lending rate Wednesday from 4.25 per cent to 3.75 per cent as the global economy continues to expand. The half percentage point cut is the fourth rate cut in a row by the central bank as inflation dropped from 2.7 per cent in June to 1.6 per cent in September.
The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.
A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.
A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
Turkiye鈥檚 air force struck Kurdish militant targets in Iraq and Syria on Wednesday in apparent retaliation for an attack at a key state-run defence company that killed five people and wounded more than a dozen others.
Canada's discount airline is suspending operations to and from Saskatoon.
Abousfian Abdelrazik told a court Wednesday about the roller-coaster of emotions he experienced during the tense days of early 2009 when he awaited the green light to return to Canada from Sudan.
Speed was a possible factor in a Tuesday night rollover involving a semi-truck that left 17 cows dead. In a news release Wednesday, Calgary police said officers were called to the area of Stoney Trail S.E. and Macleod Trail S.E. around 8:10 p.m. for a reported rollover involving a semi-truck carrying 95 cattle.
A Real Canadian Superstore in B.C.'s Fraser Valley was evacuated Tuesday night due to a "suspicious" fire in the toilet paper aisle, according to authorities.
The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.
Turkiye鈥檚 air force struck Kurdish militant targets in Iraq and Syria on Wednesday in apparent retaliation for an attack at a key state-run defence company that killed five people and wounded more than a dozen others.
The Justice Department warned Elon Musk鈥檚 America PAC in recent days that his US$1 million sweepstakes to registered voters in swing states may violate federal law, people briefed on the matter told CNN.
Three people were found dead Wednesday and four others were hospitalized after an 'unexplained' incident at a care home in southern England, police said.
The U.S. said Wednesday that 3,000 North Korean troops have deployed to Russia and are training at several locations, calling the move very serious and warning that those forces will be 'fair game' if they go into combat in Ukraine.
A homemade firebomb exploded inside a public high school in Chile on Wednesday, igniting a blaze that injured at least 34 students and one teacher, with several in serious condition, firefighters said.
An Indiana man has been sentenced to life in prison for the 1975 killing of a 17-year-old girl who was found dead in a river after she failed to return home from her job at a church camp.
Canada will lower the number of permanent immigrants it allows into the country by at least 20 per cent from its previous target of 500,000, 愛污传媒 confirmed Wednesday.
Prime Minister Justin Trudeau says the Liberal party is 'strong and united,' despite efforts from within his caucus to oust him as leader.
A debate has ground work in the House of Commons to a halt for weeks, but a new poll suggests that most Canadians are not even aware it's happening.
McDonald鈥檚 worked Wednesday to reassure customers that its U.S. restaurants are safe as federal investigators tried to pinpoint the cause of a deadly E. coli outbreak linked to the fast-food giant's Quarter Pounder hamburgers.
A quick shake of the head after a hard hit could signal that a person has a concussion, a new study suggests, based on the experiences of young athletes.
A recall has been issued for certain clothing items sold at Giant Tiger stores over high levels of lead, according to a notice published by Health Canada Tuesday.
Vancouver Fire Rescue Services received its first shipment of new firefighting gear on Wednesday, advancing the department's plans to reduce cancer risk for its members.
Officials in Hong Kong said Wednesday they have discovered dinosaur fossils in the city for the first time on a remote, uninhabited island that's part of a geopark.
A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.
Cardi B says she has been hospitalized with a medical emergency and will have to miss a Saturday night headlining performance at an Atlanta music festival.
Almost three years after the deadly Astroworld Festival tragedy, Houston rapper and concert headliner Travis Scott just settled hundreds of lawsuits related to the case.
American singer-songwriter Matthew Sweet suffered a stroke while on tour in Toronto earlier this month, and a GoFundMe campaign has been launched to raise money to cover the 'overwhelming' health-care costs.
Canada's discount airline is suspending operations to and from Saskatoon.
Things could be looking up for Waterloo, Ont.-based company and former tech darling Sandvine, after being removed from the U.S. Department of Commerce Entity List earlier this week.
Starbucks Corp suspended its forecast through the next fiscal year as new CEO Brian Niccol looks to turn around the coffee giant struggling with falling demand for its pricey drinks.
A new resident at a Manitoba animal rescue has waddled her way into people's hearts.
Grab your passport and your sunscreen, Lonely Planet has just revealed its 30 must-visit destinations for 2025 as well as a brand-new rundown of top 10 travel trends.
The Radium Hot Springs in British Columbia's Kootenay National Park has undergone a $29-million makeover.
An 18-year-old has filed a lawsuit over the ownership of the ball Shohei Ohtani made baseball history with when he became the inaugural member of the 50-50 club.
Scottie Barnes and the Toronto Raptors kick off the new NBA season tonight as they host the Cleveland Cavaliers.
Former 'Malcolm in the Middle' star Frankie Muniz is set to continue his NASCAR career with a full-time ride in the Truck Series for 2025.
An increased risk of fire has prompted the recall of thousands of Honda hybrid vehicles in Canada.
A senior executive for Volkswagen in China has been deported for allegedly using cocaine and marijuana while on vacation in Thailand, according to Chinese authorities and German media reports.
The U.S. government's road safety agency is investigating Tesla's 'Full Self-Driving' system after getting reports of crashes in low-visibility conditions, including one that killed a pedestrian.
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.
Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.
A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.
A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.
A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.
Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.
Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.
The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that 鈥 and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.
Since the record-breaking atmospheric river hit Metro Vancouver last Friday, 266 drivers have filed ICBC claims for water damage to their vehicles. In some places, flood water was so deep, cars floated away with the drivers still inside, and the engine running.
Two B.C. RCMP officers won鈥檛 face criminal charges for their use for force that left a man who had been arrested for public intoxication with a concussion, a torn shoulder and a chunk of his hair missing 鈥 but they could face professional discipline.
A coalition of Jewish organizations says it is "deeply alarmed" by a rising tide of antisemitism at the University of British Columbia in recent weeks.
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
Brampton is looking to the federal and provincial government to address the growing number of its vulnerable international students being exploited and trafficked.
The Bank of Canada made a sizable cut to its key lending rate Wednesday from 4.25 per cent to 3.75 per cent as the global economy continues to expand. The half percentage point cut is the fourth rate cut in a row by the central bank as inflation dropped from 2.7 per cent in June to 1.6 per cent in September.
Speed was a possible factor in a Tuesday night rollover involving a semi-truck that left 17 cows dead. In a news release Wednesday, Calgary police said officers were called to the area of Stoney Trail S.E. and Macleod Trail S.E. around 8:10 p.m. for a reported rollover involving a semi-truck carrying 95 cattle.
A Calgary Jewish organization issued a response Wednesday to anti-Israel graffiti spray painted on a series of road dividers near the Wilder Institute/Calgary Zoo.
A campaign to fundraise to build a new school for children with complex medical needs just got an assist from the Calgary Flames.
One person has died and others have been injured after a two-vehicle collision involving a tractor trailer and a car on Highway 7 in eastern Ontario, according to police.
Homeowners with a variable rate mortgage in Ottawa can expect to see some savings thanks to a significant rate cut by the Bank of Canada.
A Zamboni driver in western Quebec has been arrested on suspicion of impaired driving after a low-speed crash at a hockey rink on Monday.
Nigel Berkley and CRARR plan to file complaints with the police ethics commissioner and the human rights commission after Berkley was repeatedly stopped while driving his mother's car over four months.
Montreal Mayor Valerie Plante will not be seeking re-election.
Canada will lower the number of permanent immigrants it allows into the country by at least 20 per cent from its previous target of 500,000, 愛污传媒 confirmed Wednesday.
The Alberta Pharmacists' Association says upcoming government cuts to service compensation fees will have a big impact on pharmacists and also patient care.
A goal on the power play Tuesday night isn't stopping Edmonton Oilers' coaches from tinkering with the special-teams lineup.
An Edmonton tow truck operator has been charged after police say he refused to release a vehicle to its owner.
A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.
The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.
A volunteer treasurer is facing charges after funds went missing from Nova Scotia Premier Tim Houston鈥檚 riding.
A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.
A 59-year-old man has died following a crash involving three vehicles that started after a tire fell off a car on the Trans-Canada Highway Wednesday morning in the RM of Tache.
A Manitoba inmate who was released from custody by mistake has been arrested, according to Winnipeg police.
Regina police says officers will provide an update Thursday in its search for the suspect of a homicide that took place in the city during the summer of 2023.
The Saskatchewan Roughriders along with other Canadian Football League [CFL] clubs have announced their player nominations for the 2024 league awards.
The race to form government is heating up ahead of the provincial election on Monday. Both the Saskatchewan NDP and the Saskatchewan Party feel they have the momentum as each leader has been focusing on different areas of the province as the campaign trail nears its end.
Detective Robert Hofstetter examined Erb鈥檚 home after her death and came to several conclusions based on the blood stains he found there.
A psychologist who recently assessed Geovanny Villalba-Aleman believes he may have experienced a psychotic break before stabbing three people in a gender studies class at a University of Waterloo.
Things could be looking up for Waterloo, Ont.-based company and former tech darling Sandvine, after being removed from the U.S. Department of Commerce Entity List earlier this week.
The race to form government is heating up ahead of the provincial election on Monday. Both the Saskatchewan NDP and the Saskatchewan Party feel they have the momentum as each leader has been focusing on different areas of the province as the campaign trail nears its end.
Canada's discount airline is suspending operations to and from Saskatoon.
The Saskatoon civic election is drawing closer, with mayoral candidates outlining their visions to keep the city competitive and attract businesses.
A Sudbury jury has found Felicity Altiman guilty of second-degree murder in the December 2020 stabbing death of a Sudbury man.
It only took minutes for North Bay pharmacist Brian Chute to be out $1,500 after fraudsters deceptively swapped his bank card with another.
The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.
Under tough cross-examination at the London courthouse on Wednesday, Rachel Johnson, 21, was asked a number of times why there was a delay in calling 911
A 27-year-old man is miraculously alive after his pickup went over Hawk Cliff near Port Stanley. Fire fighters estimate that from the top to bottom of the embankment is around 270 feet.
OPP have confirmed that a transport truck driver crashed into a historic home just southeast of London this morning.
A haunted house in the Town of Innisfil is causing a real scare for some people a week before Halloween.
Barrie police conducted a search on Wednesday of the last place Autumn Shaganash was seen in hopes of giving her family some answers to her mysterious disappearance.
A 34-year-old motorcyclist has died following a collision in Barrie鈥檚 south end on Tuesday.
Windsor Fire and Rescue Services has been working to prepare for heightened HAZMAT risk ahead of relaxed restrictions around the transportation of some hazardous materials across the Ambassador Bridge.
As hospitals elsewhere in Ontario reintroduce mask mandates due to rising respiratory illnesses, Windsor hospitals are taking a more measured approach.
Now that production is set to begin at Windsor鈥檚 battery plant, NextStar is looking for some employees to make that production happen.
Two B.C. RCMP officers won鈥檛 face criminal charges for their use for force that left a man who had been arrested for public intoxication with a concussion, a torn shoulder and a chunk of his hair missing 鈥 but they could face professional discipline.
A man who fired at least 19 gunshots at an RCMP detachment in northern British Columbia, narrowly missing officers inside, has won a reduced prison sentence from the province's highest court, which ruled the sentencing judge failed to fully weigh the man's mental illness at the time.
Since the record-breaking atmospheric river hit Metro Vancouver last Friday, 266 drivers have filed ICBC claims for water damage to their vehicles. In some places, flood water was so deep, cars floated away with the drivers still inside, and the engine running.
Dave Lindsey began growing giant pumpkins to bring a bit of magic to his grandkids' Halloween.
A U.S. District Court judge in Montana has sentenced a 27-year-old man from Kelowna, B.C., to 18 months in prison for using fake names to buy guns with the aim of selling them in Canada.
Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.
Graduate students looking to become mental-health professionals will have more opportunities to study in the University of Lethbridge鈥檚 Master of Education Counselling Psychology program.
A dazzling light display is making its return to Lethbridge this holiday season.
As part of anniversary celebrations, the City of Lethbridge is inviting the community to see VisitLethbridge.com Arena like they never have before.
The lack of 24-hour public washrooms has been a long-standing issue in the Sault, especially considering the rise in homelessness.
The union representing the fire rangers with the Ministry of Natural Resources says money won鈥檛 fix the systemic problems in the workplace.
Rallies by a group called Voices Against Violence took place across the country on Monday, including Sault Ste. Marie.
Investigators found the remains of a 77-year-old American man on Wednesday at the scene of a fire that destroyed a hotel in western Newfoundland earlier on the weekend.
Police in western Newfoundland say a 77-year-old man visiting the province from Kansas is missing after a fire at a hotel in Deer Lake, N.L.
At 2 p.m. on Thursday, the scene at the Lions Club in Clarenville, N.L., rivalled any rowdy St. John's bar that thumps with music late on a weekend night.
The Shopping Trends team is independent of the journalists at 愛污传媒. We may earn a commission when you use our links to shop.聽Read about us.
