Economy & Politics

RBC withdraws further from the Grand Duchy

The Luxembourg workforce of the Royal Bank of Luxembourg branch will continue to decline in 2021. The fault of a new social plan, unrelated to the Covid crisis, ensures the management of the establishment.

The Luxembourg workforce of the Royal Bank of Luxembourg branch will continue to decline in 2021. The fault of a new social plan, unrelated to the Covid crisis, ensures the management of the establishment.

(pj with Julie Edde) RBC Investor & Treasury Services, part of the Royal Banf of Canada, will embark on a new round of layoffs. The information was revealed on Wednesday by our colleagues from Luxtimes. Enough to predict dark hours for the staff still in place in Luxembourg, in the famous Red Tower in Belval.


A Businessman is silhouetted as he stands under the Arche de la Defense, in the financial district west of Paris, November 20, 2012. France said its economy was sound and reforms were on track after credit ratings agency Moody's stripped it of the prized triple- A badge due to an uncertain fiscal and economic outlook. Monday's downgrade, which follows a cut by Standard & Poor's in January, was expected but is a blow to Socialist President Francois Hollande as he tries to fix France's finances and revive the euro zone's second largest economy. REUTERS / Christian Hartmann (FRANCE - Tags: POLITICS BUSINESS) - RTR3ANMI

If 2020 seems like a parenthesis, 2021 promises to be an eventful year in the banking sector. Proof of this is the movements initiated at global and European level of the main players. Luxembourg should not escape the trend.


The company has made a proposal for cost-cutting measures in Europe, which will include “some job losses”, mainly in Luxembourg, according to an email that was sent to staff by the managing director of the RBC unit based in London, Francis Jackson.

There would be no job losses linked to this plan before 2021, according to the information transmitted. But, contacted, the firm declined to comment on the number of positions concerned. Still, the news surprised the financial circles of the country, while a few days ago, the secretary general of Aleba, Laurent Mertz, assured: “For Luxembourg, to date, we have no ‘concrete information on a decrease in the number of employees in the local establishments’.

Another thousand employees

“These changes are aligned with our business strategy and are unrelated to Covid-19,” an RBC spokesperson said. “To the extent possible, job losses will be managed through natural workforce reductions, redeployment and retirements.” The Belval subsidiary of one of Canada’s largest banks has approximately 1,000 permanent and contract employees, working in asset services, back office and IT services for global institutional clients.


WI. Ranking of banks. Banken, Finanzplatz Luxemburg, Arendt,. Photo: Gerry Huberty / Luxemburger Wort

Having obtained “acceptable starting conditions” at Kneip, the main union in the financial sector does not hide, Wednesday, its pessimism for the months to come. “Companies are considering slashing their costs,” says the president, Robert Mendolia.


This year, the company had already cut 201 permanent positions in Luxembourg as part of a dismissal program. Group-level revenue decreased by 15% compared to 2019, reaching 5.2 billion euros to date. The company manages 2.9 trillion euros in assets worldwide.


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