RBC Cuts More Than a Dozen in US Investment Bank After Recent Layoffs

Royal Bank of Canada’s investment-banking arm conducted a second round of layoffs in the US in recent months, according to people with knowledge of the matter.

(Bloomberg) — Royal Bank of Canada’s investment-banking arm conducted a second round of layoffs in the US in recent months, according to people with knowledge of the matter.

The lender’s RBC Capital Markets division is laying off more than a dozen of its US investment-banking team, which is comprised of about 1,000 employees, said some of the people, who asked not to be identified discussing personnel changes. The move follows its decision to layoff about 1% of the group last September. 

An RBC spokeswoman said that the changes impact a small number of employees as the bank regularly reviews business strategy, the operating environment and how the firm allocate resources. RBC continues to invest in areas of opportunity and expects total headcount to be flat or up this year, she said.

The bank has also been hiring. It recently added senior talent from institutions including Credit Suisse Group AG and SVB Securities.

Wall Street has leaned on headcount reductions and hiring freezes to help contain costs amid inflation, a drop in deal activity and the possibility of a coming recession. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said this month that the bank’s headcount is set to remain unchanged for the rest of the year. 

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