Bank of Montreal to axe 4 percent of workforce, warns on loans
By Matt Scuffham and Marcy Nicholson
TORONTO/NEW YORK (Reuters) - Bank of Montreal (BMO.TO: Quote) will shed around 4 percent of its 46,000 workforce as part of a drive to cut costs, staff were told in a memo on Wednesday after the lender reported a decline in quarterly profit.
Chief Executive Bill Downe said the move, which will see around 1,850 jobs go, was a response to changing customer behavior and the advent of new digital technologies.
Banks around the world are cutting branches and staff and investing in technology as more customers bank online rather than visit a branch.
"We have taken this step to position the bank for what lies ahead - and to account for the structural changes underway in the financial services industry," Downe said in the memo seen by Reuters.
Speaking to Reuters, Chief Financial Officer Tom Flynn said more jobs would leave from the retail side than its investment banking arm, with some branches set to close in the medium term.
Flynn said the number of transactions done by customers online and via mobile banking apps had risen by 5 million in the past two years while branch transactions declined.
"We're adjusting how we do business and moving with our customers," he said.
Canada's fourth biggest bank earlier Wednesday announced a C$132 million ($101 million) restructuring charge, helping push its second-quarter net income down 3 percent to C$973 million, or C$1.45 per share. Continued...