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Royal Bank of Canada to Cut 1,800 Jobs as Trudeau Economy Implodes

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Royal Bank of Canada to Cut 1,800 Jobs

Canada’s largest bank, Royal Bank of Canada (RBC), warned of a weaker economy ahead and announced intentions to reduce approximately 1,800 employees. Royal Bank, Chief Executive Officer Dave McKay forecasted slower growth and lower inflation as a result of the lagged impact of monetary policy, a slowdown in China, and higher climate and geopolitical threats.

“We are seeing signs of slowing labour markets, such as slower wage growth, fewer job openings, and an increase in Canadian unemployment.” As a result, our base case predicts a weaker economic picture,” he told Aljazeera.

“The operating environment is changing faster than we’ve seen in more than a decade.”

McKay announced in May that the lender will cease hiring after exceeding its target by thousands of personnel. The number of full-time employees was down 1% from the previous quarter, and the bank aims to reduce personnel by another 1% to 2%. As of July 31, the bank has 93,753 full-time workers.

“The bank did a commendable job in managing expenses, with an improvement in its overall efficiency ratio,” according to Barclays analyst John Aiken, who noted the lender’s earnings beat.

TD Follows Royal Bank

However, the country’s second-largest bank, Toronto-Dominion Bank (TD), missed analysts’ quarterly profit projections due to increasing spending, rainy day funds to cover outstanding loans, and deterioration in its US operations.

TD set aside 766 million Canadian dollars ($565 million), up from 351 million Canadian dollars ($274 million) a year ago, while RBC set aside 616 million Canadian dollars ($455 million) for credit losses, up from 340 million Canadian dollars ($266 million), as consumers struggle to make payments amid rising living costs.

Since March of last year, the Bank of Canada has hiked interest rates ten times to combat persistent inflation, boosting profitability for banks’ consumer businesses as they benefit from higher loan revenues.

This contributed to a 5% increase in earnings at RBC’s retail division. However, profits from TD’s Canadian personal and commercial banking sector declined 1%, while income from its US retail unit fell 9%.

“A higher interest rate would put the consumer under pressure.” But, so far, they have proven to be resilient… But we’re keeping a close eye on things,” TD’s Chief Financial Officer Kelvin Tran said in an interview.

Royal Bank Stock UP

TD also intends to repurchase 90 million shares, after the beginning of a share repurchase programme for 30 million shares in May, shortly after terminating its $13.4 billion acquisition of a First Horizon deal that provided the bank with cash.

Net interest income grew 6.7 percent to 6.29 billion Canadian dollars ($4.6 billion) at RBC and 3.5 percent to 7.29 billion Canadian dollars ($5.4 billion) at TD.

According to Refinitiv statistics, RBC posted adjusted earnings of 2.84 Canadian dollars ($2.09) per share, topping analysts’ projections of 2.71 Canadian dollars ($2) per share. The results benefited from a reduced tax rate as a result of the Canada Recovery Dividend, which was enacted in the 2023 budget.

The adjusted earnings per share of 1.99 Canadian dollars ($1.46) fell short of the estimate of 2.04 Canadian dollars ($1.5). A payment of 306 million Canadian dollars ($225 million) connected to the termination of the bank’s First Horizon purchase also had an impact on profitability.

With market capitalisations of 168 billion Canadian dollars ($124 billion) and 151 billion Canadian dollars ($111 billion), RBC and TD account for half of the market share among the main six Canadian banks.

Nonetheless, their equities have underperformed, sliding between 5% and 6% this year, compared to the broader index’s 2.55 percent rise.

RBC’s stock was up 1.6 percent, while TD’s was down more than 2 percent.

 

Geoff Brown is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills he consistently delivers high-quality, engaging content that resonates with readers. Geoff's' articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

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Sonic the Hedgehog Dominates Christmas Wish Lists

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Sonic the Hedgehog
Sonic the Hedgehog Merchandise are hot Christmas Items

Sonic the Hedgehog is dominating Christmas wish lists this year. The lovable blue hedgehog is back in the spotlight, from sonic the hedgehog toys and games to sonic the hedgehog coloring pages and movie hype.

Sonic-themed holiday merchandise is on fire, from quirky sweaters to action figures flying off shelves. Sonic the Hedgehog Christmas outfits for kids are selling out fast, making them a go-to gift option for festive fun.

Retailers have been quick to recognize Sonic’s holiday appeal. Special promotions and exclusive items, like the Sonic holiday t-shirts, are everywhere.

Everyone’s stocking up on Sonic merchandise, from big-box stores to boutique retailers.

Online shopping platforms are seeing a surge in searches for Sonic items. Whether it’s Sonic Christmas-themed tops or Sonic the Hedgehog coloring pages, Sonic the Hedgehog toys or Sonic and the Hedgehog 3, the demand is skyrocketing.

Retailers who tap into this trend are sure to see strong holiday sales.

Sonic has been around since the early 90s, but his popularity never wanes. With the release of Sonic 3, fans are more excited than ever.

sonic the hedgehog 4

Sonic the Hedgehog 4

Meanwhile, Paramount Pictures is preparing “Sonic the Hedgehog 4,” with the newest addition in the family-friendly genre set for a spring 2027 release.

The announcement comes as “Sonic 3” opens in theatres on Friday, estimated to gross $55 million to $60 million from 3,800 North American locations.

The sequel is shaping up to be a good holiday season blockbuster for Paramount, which explains the desire in future “Sonic” adventures. On the international front, the film will be released on Christmas Day in 52 markets.

On Rotten Tomatoes, critics gave “Sonic 3” an outstanding 87% fresh score.

The first two films grossed a total of $725.2 million at the global box office and generated over $180 million in global consumer expenditure through home entertainment rentals and digital purchases.

They also inspired a spinoff Paramount+ series, “Knuckles,” which premiered earlier this year.

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Amazon Strike Called By Teamsters Union 10,000 Walkout

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Amazon Strike Called By Teamsters Union
Teamsters members were demonstrating at "hundreds" of other Amazon locations.

An Amazon strike has hit facilities in the United States in an effort by the Teamsters union to pressure the corporation for a labour agreement during a peak shopping season.

The Teamsters union told the Associated Press that Amazon delivery drivers at seven facilities in the United States walked off the job on Thursday after the firm failed to discuss a labour contract.

According to the union, Amazon employees in Teamsters union jackets were protesting at “hundreds” of additional Amazon facilities, which the union billed as the “largest strike” in US history involving the company.

The corporation, which employs over 800,000 people in its US delivery network, stated that its services will be unaffected.

It was unclear how many people, including members of Germany’s United Services Union, participated in Thursday’s demonstration. The Teamsters union reported that thousands of Amazon employees were implicated in the United States.

Amazon Strike at 10 Locations

Overall, the group claims to represent “nearly 10,000” Amazon strikers, having signed up thousands of people at roughly ten locations across the country, many of whom have joined in recent months.

The organization has claimed recognition from Amazon going on strike, claiming the firm illegally neglected its obligation to bargain collectively over salary and working conditions.

The Teamsters is a long-standing US union with nearly one million members. It is well-known for securing lucrative contracts for its members at companies like delivery behemoth UPS.

Most of the Teamsters’ Amazon campaigns have concerned drivers working for third-party delivery companies that partner with the tech behemoth.

Amazon denies that it is liable as an employer in those circumstances, which is a point of legal contention. In at least one case, labour officials have taken a preliminary stance in favour of the union.

Stalled Contract Negotiations

Amazon employees at a major warehouse on Staten Island in New York have also chosen to join the Teamsters. Their warehouse is the only Amazon facility in the United States where labour officials have formally recognized a union win.

However, the Amazon strike is because contract negotiations have not progressed since the 2022 vote. It was not one of the areas scheduled to go on strike on Thursday.

Amazon, one of the largest employers in the United States, has long received criticism for its working conditions and has been the target of activists seeking to gain traction among its employees.

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Amazon Encounters Numerous Strikes As Unions Aim At The Holiday Shopping Surge.

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Amazon

(VOR News) – Thousands of Amazon employees at various sites across the country were scheduled to go on strike on Thursday in an effort by the Teamsters union to pressure the retail behemoth to acknowledge its unionised workers in the United States.

The walkout is expected to concentrate on seven Amazon locations across the country during the holiday purchasing surge and may be the most significant union action against Amazon in the nation’s history.

The business announced on Thursday morning that there had been no effect on operations. It also stated that it is “continuing to concentrate on fulfilling customers’ holiday orders.”

The International Brotherhood of Teamsters maintains that it represents more than 10,000 Amazon employees and contractors in aviation centres, warehouses, and delivery centres.

Amazon has refused to acknowledge the union for many years.

The retail giant, which employs approximately 1.5 million individuals, excludes contractors and part-timers. A strike has been initiated by delivery couriers and warehouse employees at seven distinct locations in order to exert pressure on the company to negotiate a collective bargaining agreement that would encompass modifications to compensation, amenities, and working conditions.

Picketing was intended for New York, Atlanta, Los Angeles, San Francisco, and Skokie, Illinois.

Also, the Teamsters assert that they are establishing picket lines at “hundreds” of additional warehouses and delivery centres by encouraging non-unionized workers to picket under U.S. labour law, which protects workers’ ability to take collective action to further their interests.

“Amazon workers are exercising their power,” Randy Korgan stated to NPR.

“They now realise there is a pathway to take on a corporate giant like this – and that they hold the power.” Amazon responds by accusing the Teamsters of fabricating information regarding the strikes, asserting that the participants are “entirely” outsiders rather than employees or subcontractors of the corporation.

Amazon spokesperson Kelly Nantel stated that “the reality is that they were unable to secure sufficient support from our employees and partners and have invited external parties to harass and intimidate our team.” For more than a year, the Teamsters have been intentionally misleading the public by claiming to represent “thousands of employees and drivers.” They do not.

The Teamsters did not provide a specific duration for the strike; however, they informed NPR that it would extend beyond one day. Workers would receive $1,000 per week in strike money, as per the union.

Teamsters President Sean O’Brien issued a statement in which he stated, “If your package is delayed during the holidays, you can attribute it to Amazon’s insatiable greed.” We established a firm deadline for Amazon to attend the meeting and treat our members equitably. They disregarded it.

The Teamsters granted until December 15 to convene with its unionised employees and develop a collective bargaining agreement.

Amazon has opposed all unionisation efforts in court, asserting that unions were not advantageous to its employees and emphasising the compensation and benefits that the organisation currently provides.

Amazon has been accused of discriminatory labour practices on numerous occasions, including the termination of labour organisers. Furthermore, it has disputed its official status as a contract employer.

Teamsters organize Amazon delivery couriers and other employees.

In June, Amazon established its first unionised warehouse in Staten Island, New York, two years after making history by voting to join the fledgling Amazon Labour Union, which is also affiliated with the Teamsters.

The union is one of the most influential in the United States and Canada, with 1.3 million members. On Thursday, the German United Services Union declared that Amazon employees in Germany would participate in a strike in conjunction with their American counterparts.

In the past, Amazon has experienced demonstrations in Germany and Spain that were related to the holiday season in order to advocate for improved wages and working conditions.

“The holiday season has arrived.” Delivery is anticipated. Patricia Campos-Medina, the executive director of Cornell University’s Worker Institute, asserts that “this is the moment in which workers have control over the supply chain.”

The Teamsters have reported that Amazon’s profits have increased both during and after the pandemic. The corporation is currently valued at over $2.3 trillion, with net income of $15 billion in the most recent quarter alone. It is the second-largest private employer in the United States, following Walmart.

SOURCE: NPR

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