Big banks/business strikes again...

The Lizard King

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Jul 8, 2003
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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.
 

scubadude

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Sep 14, 2003
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Lower Mainland
I agree with you that laying off people to improve the bottom line seems harsh. I have been layed off in the past because of the need to cost save. However, lets remember that business employ people to further their aims not because they necessarily want to give people jobs. Any business in the private sector exists to make money. Let's not be naive about this. There is nothing in their charter that says " to create as many jobs for life as possible."
 

Lolita

Banned
Dec 12, 2002
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Yeah and I bank with these assholes. I hate chartered banks, but say you'll taking your business to a credit union, they'll bend over backwards to keep you.
 

wolverine

Hard Throbbing Member
Nov 11, 2002
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Keep in mind that amongst the major Canuck banks, RBC was once number one about 15 years ago, but has had a slow, sad decline to the back of the race since then. If they have to resort to layoffs and branch closures, it's their own fault because they've lost former customers like myself. After jumping from RBC to a couple more banks, I landed my money at TD several years ago and I've rarely had problems with them...hell, I think they improved immensely after they merged with Canada Trust.
 

wackyboy

Banned
Sep 17, 2004
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Well, I was going to take a break from perb, but this has roused me. RBC is only looking for #1, and that ain't their employees, that's for sure.

From one who knows.

They have suffered since they bought Centura Bank in North Carolina. It has been nothing but a sink hole since. Why was it put up for sale in the first place? The employees at RBC were already stretched to their limit, before the take over, then they couldn't take anymore and many of the best left(ahem).

Oh, I won't knock RBC, they gave me my first break - but then those people were the first to go!

WB
 
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The Lizard King

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Jul 8, 2003
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Scubadude, I understand the role and mission of business in society. As I said, ironically I'm a huge benefactor of it. I'm suggesting that maybe it's about time there's some legislation to mitigate the impact that profitable companies, especially those who skirt paying their share of corporate taxes, have on the social system and the general population as a result of their predatory policies.

I actually moved from RBC to VCS several years ago because of activity such as this. As trivial as it sounds, the last straw was when RBC pulled out of the ACC sponsorship at the very last minute, leaving the organizers with virtually no options. RBC chose to pay millions in naming rights to the hockey arena in North Carolina over supporting a high profile event here that generated millions for local charities. Fuckers...
 

scubadude

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Sep 14, 2003
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Lower Mainland
I'm an employer myself. I have been fortunate thus far, not having to have to lay anyone off. However, I beleive your concern seems to be the impact such actions (profit over people for lack of a better expression) have on the social structure, vis-a-vis pressure put on the EI system, welfare, etc.

True enough. there is such pressure present. Please remember, though, that employers pay an extrodinary amount in payroll taxes that, supposedly goes into alleviating the burden such layoffs cause. In addition, our EI system is incredibly overfunded right now, indicating that businesses and employees are contributing more than is necessary. Either the government is gouging us, or the impact of such layoff on the social safety net is not as pronounced as some would claim.
 
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