The move follows recent financial losses, management changes, and a fine of $65 million
The City National Bank (City National), the American unit of the Royal Bank of Canada (RBC), has made changes in its staffing plans through cutting nearly 100 jobs, as reported in an article by Reuters.
The move followed the bank’s recent financial losses and management changes as well as a regulatory fine of $65 million.
“We regularly review our staffing plans and models to ensure they align with our strategic priorities and allow us to best serve our clients and communities,” said a spokesperson for City National.
The job cuts followed the layoffs announced by banking giants in the US like Wells Fargo, Bank of America, and Citigroup as dealmaking had weakened and demand from borrowers had softened in the previous year.
In the previous month, the Office of the Comptroller of the Currency (OCC) had fined the City National because of the lender’s engagement in unsafe or unsound practices like failing to establish effective risk management and internal controls.
The regulator also issued a cease-and-desist order that required the bank to take ample actions in order to improve its strategic plan.
Last November, City National Bank made changes in its management through the appointment of Howard Hammond as its new chief executive officer and Chris Doll as its chief financial officer.
The RBC had invested around $2.95 billion into City National Bank last October in order to bolster the bank’s capital, which was part of its management actions in an attempt to improve profitability.
