How can a business that produces quarterly earnings of $518 mil actually have the balls to cut jobs? A bill should be passed making this illegal and the senior decision makers should be hanged by their nuts in public. Just another reason not to deal with the big banks...
You know...I'm struggling with some inner demons here. I work for a large, publicly traded company in a senior management role, making great money and have options given to me on a yearly basis. I despise the "profit over people" philosophy big business stands for and when the economy affected my firm in the U.S. and Canada, they cut jobs because their ROI/ROS was only 4%. Fortunately, I was able to structure my business so not a single person lost their job but the whole process soured me on the organization and instilled some extreme bitterness inside of me towards big business in general. To this day, I just can't get over it, yet here I am benefitting from it all in a huge way. Pretty fucked, eh?
Job cuts eat into RBC's Q4 earnings
Last Updated Tue, 30 Nov 2004 16:08:30 EST
TORONTO - Royal Bank said Tuesday the cost of eliminating 1,660 jobs – the majority of them in Canada – pushed its fourth-quarter earnings down 31 per cent to $518 million.
The bank said it made 78 cents a share, down from the same quarter of last year when the bank made a profit of $746 million or $1.11 a share.
Royal took restructuring charges of $192 million during the quarter and a $130 million goodwill impairment charge at RBC Mortgage, its U.S. mortgage business.
The bank said the restructuring charge includes $166 million for staff cuts – mainly head office and support jobs – and $26 million in building-related charges, and other charges consisting entirely of professional service fees.
About 40 of the approximately 1,660 positions, mainly executive and senior management staff, were notified by Oct. 31, with the majority of the remaining positions expected to be eliminated in 2005.
Roughly 1,120 positions are being cut in Canada, while 477 jobs will be eliminated in the U.S. and 63 internationally.
Royal said it is in the process of closing 38 of RBC Mortgage's 213 branches in the U.S., with an additional nine RBC Mortgage branches and 10 of RBC Centura's 275 branches slated to be closed in 2005.
"We took strong action this quarter to become more efficient and achieve higher revenue growth," said Gordon Nixon, Royal's president and CEO.
"While these actions, driven largely by our business realignment effective Nov. 1, 2004, significantly reduced the quarter's earnings, they are in the best interests of creating long-term value for shareholders and clients," Nixon said.
The bank's provision for bad loans was $97 million in the fourth quarter, compared to $125 million last quarter and $137 million a year ago.
The decline in the credit provision was due to fewer new problem loans, the resolution of some problem loans and a $25-million reversal of the general allowance in RBC Capital Markets.
Royal Bank shares were up 48 cents on the TSX, closing at $62.48.
You know...I'm struggling with some inner demons here. I work for a large, publicly traded company in a senior management role, making great money and have options given to me on a yearly basis. I despise the "profit over people" philosophy big business stands for and when the economy affected my firm in the U.S. and Canada, they cut jobs because their ROI/ROS was only 4%. Fortunately, I was able to structure my business so not a single person lost their job but the whole process soured me on the organization and instilled some extreme bitterness inside of me towards big business in general. To this day, I just can't get over it, yet here I am benefitting from it all in a huge way. Pretty fucked, eh?
Job cuts eat into RBC's Q4 earnings
Last Updated Tue, 30 Nov 2004 16:08:30 EST
TORONTO - Royal Bank said Tuesday the cost of eliminating 1,660 jobs – the majority of them in Canada – pushed its fourth-quarter earnings down 31 per cent to $518 million.
The bank said it made 78 cents a share, down from the same quarter of last year when the bank made a profit of $746 million or $1.11 a share.
Royal took restructuring charges of $192 million during the quarter and a $130 million goodwill impairment charge at RBC Mortgage, its U.S. mortgage business.
The bank said the restructuring charge includes $166 million for staff cuts – mainly head office and support jobs – and $26 million in building-related charges, and other charges consisting entirely of professional service fees.
About 40 of the approximately 1,660 positions, mainly executive and senior management staff, were notified by Oct. 31, with the majority of the remaining positions expected to be eliminated in 2005.
Roughly 1,120 positions are being cut in Canada, while 477 jobs will be eliminated in the U.S. and 63 internationally.
Royal said it is in the process of closing 38 of RBC Mortgage's 213 branches in the U.S., with an additional nine RBC Mortgage branches and 10 of RBC Centura's 275 branches slated to be closed in 2005.
"We took strong action this quarter to become more efficient and achieve higher revenue growth," said Gordon Nixon, Royal's president and CEO.
"While these actions, driven largely by our business realignment effective Nov. 1, 2004, significantly reduced the quarter's earnings, they are in the best interests of creating long-term value for shareholders and clients," Nixon said.
The bank's provision for bad loans was $97 million in the fourth quarter, compared to $125 million last quarter and $137 million a year ago.
The decline in the credit provision was due to fewer new problem loans, the resolution of some problem loans and a $25-million reversal of the general allowance in RBC Capital Markets.
Royal Bank shares were up 48 cents on the TSX, closing at $62.48.






