TORONTO : Some Royal Bank of Canada employees who joined as part of an HSBC Canada acquisition are worried about losing their jobs when a six-month guarantee expires this month, according to six sources familiar with the situation.
The Canadian lender agreed with the government to keep about 3,000 former corporate HSBC staff employed for six months as a condition of its C$13.4 billion acquisition of HSBC’s Canadian business, which closed at the end of March.
RBC told Reuters it found roles for nearly 80 per cent of HSBC Canada’s former workforce of 4,500 people. That equates to roughly 3,600 workers, including corporate and retail staff.
Some former HSBC staff have not been given clear directions about their daily responsibilities at RBC and are becoming increasingly worried about layoffs, according to six employees interviewed by Reuters who declined to be identified, citing the uncertainty over their jobs.
RBC said it had created “dedicated resources” to help new joiners and had made efforts to slow hiring and hold open roles while waiting for the deal to be approved.
“We’ve also been transparent with employees, letting them know that those who are not in roles at the end of the six-month period will be provided with a severance package well beyond any legal requirement,” a spokesperson said in an emailed statement.
‘WE HAVE LOTS OF JOBS’
Canadian Finance Minister Chrystia Freeland approved the deal in December on the condition that RBC also retain front-line HSBC banking and financial advisors for at least two years. One of the conditions also included providing voluntary departure packages for any HSBC employees seeking to leave.
“You should not worry,” RBC CEO Dave McKay told HSBC Canada staff in a December town hall. His comments have not been previously reported.
“There is so much opportunity and I didn’t want you to go
