Canada’s Banks Shed Staff as Troubles Grow for Indebted Consumers

Canada’s biggest banks are facing a storm of challenges, with a slowdown in consumer spending and a dearth of public listings pushing some big lenders to make hefty job cuts as their profitability falters, the Financial Times reported. The decision by Bank of Montreal (BMO), Canada’s fourth-largest bank, to slash its global workforce by 5 per cent highlights the growing problems facing the country’s financial services sector. BMO this week announced a pre-tax charge of C$484m ($360m) for the three months to the end of October, pushing net income down 30 per cent year on year to just under C$1.2bn. The charge mostly related to severance payments across the group as the bank seeks to streamline costs. Chief executive Darryl White said the restructuring was undertaken after “serious consideration” and that “there will be ongoing accountability throughout the organization for the decisions that have been made”. Read more