Bank of Montreal is cutting about 1,100 jobs after a 44 per cent drop in quarterly net income to $358 million.
The bank’s results reported yesterday were dragged down by $118 million in job-cutting costs and by higher loan-loss provisions, largely in the United States.
The bank said the job reductions will occur across the company and will continue through the year. Cuts are expected to hit about three per cent of BMO’s 36,900-person workforce, primarily in managerial positions.
CEO Bill Downe described the move as “simplifying our management structure … by reducing layers and broadening mandates.” He said future annual savings will exceed the $118 million in severance expense.
BMO Financial Group said it earned 61 cents per share in the second quarter of the banking year. That was down from a year-earlier profit of $642 million or $1.25 per share, despite higher profits in Canadian traditional banking and capital markets.
The results exceeded market expectations.
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