Canadian banks shrink workforces as they invest heavily in technology


By Nichola Saminather
TORONTO (Reuters) – Canada’s top banks are shedding workers for the second straight year, moving toward leaner operations to satisfy investors demanding returns on tens of billions of dollars that lenders have poured into new technologies.
Five of Canada’s six biggest banks cut their workforces 4.4% from a year earlier to a combined total of 291,409 full-time equivalent employees as of Jan. 31. That is down 5.2% from a peak in the third quarter of 2019.
Despite growing optimism about a robust economic recovery, loan growth outside of mortgages has been stagnant due to the relatively slow pace of COVID-19 vaccinations in Canada and renewed lockdowns in some major cities.
“It’s very difficult to grow” revenues, said Todd Johnson, chief investment officer at …

Read More on Datafloq
Credit: Source link