Thousands of jobs are set to be axed by Bank of Montreal amid an efficiency drive that is being seen across the global banking sector.
BMO announced its latest results this week which shows a charge of $484 million before taxes, mostly due to severance payments. The jobs reduction of around 5% of its workforce equates to around 2,300 positions.
“This is a sizable move,” Chief Executive Officer Darryl White told Bloomberg. “We’re on a new path as far as a continuous improvement of the operating efficiency of the bank and this charge is designed to accelerate that path as we go forward.”
BMO cut 4% of its workforce, 1,850 jobs, in 2016 and earlier this year it cut 100 jobs from its capital markets division.
Despite the job cuts, BMO appears to be in good shape with adjusted per-share earnings of $2.43, beating the $2.41 average estimate of 14 analysts in a Bloomberg survey. Earnings for the fourth quarter of $1.19 billion means a decline of 30% on the previous quarter due to restructuring costs.
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