The ax falls to Desjardins Group while other players in the financial industry have also rationalized their workforce recently. The cooperative laid off 176 people in Montreal in June, according to notices sent to the Ministry of Labor. Of these, 143 people are associated with personal services and 33 others are associated with Groupe Technologies Desjardins.
With this “difficult” decision, Desjardins aims to manage its costs and make productivity gains. “Desjardins members and clients are changing the way they use our services and we must ensure that we respond efficiently to their requests,” explains spokesperson Jean-Benoît Turcotti.
Between 3,000 and 4,000 employees leave Desjardins Group each year. The cooperative, which has 58,000 employees, will take advantage of “natural attrition” to assess the suitability of filling vacancies. “Desjardins’ objective is not to cut positions, but to remain relevant and effective,” assures Mr. Turcotti.
The announcement comes against a backdrop of caution for financial institutions as rising interest rates weigh on the finances of businesses and individuals.
Desjardins’ earnings before member dividends fell 24.2% to $342 million in the first quarter. The cooperative also recorded an endowment of 105 million as a provision for credit losses. This is an increase of 99 million compared to the same period last year.
Other banks too
Earlier in June, Laurentian Bank announced its decision to cut “fewer than 20 positions” in its capital markets division.
Also in June, the capital markets division of the Bank of Montreal also announced the abolition of about 100 positions, half of which are located in Canada.
In May, Royal Bank President and CEO Dave McKay acknowledged that the nation’s largest bank had overestimated its needs “by thousands” at the height of the pandemic’s staffing issues.
The National Bank’s chief financial officer, Marie-France Gingras, mentioned for her part that the institution had been “really careful” in its decisions to hire and replace vacant positions for “a few quarters”.
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