More cuts on way at BMO
TARA PERKINS AND BOYD ERMAN
Friday, June 27, 2008
Bank of Montreal is cutting about 150 employees in its securities business because of tough markets that are battering banks around the world.
The reductions amount to about 6 per cent of the bank's 2,400-person BMO Nesbitt Burns arm, which, like those of the bank's rivals, has been hurt by a drop in business as the credit crunch has slowed everything from stock sales to mergers and acquisitions.
People are being let go in debt products, investment and corporate banking, among other areas.
While the bank would not confirm the number of job cuts, BMO spokesman Ralph Marranca said "this is part of what we said we were going to do last quarter, in terms of reviewing the business given the market realities."
Bank of Montreal has been downsizing since early 2007, when it announced that it would lay off 1,000 employees, almost 3 per cent of its work force, after a disappointing operating performance.
That was before the bank lost more than $800-million as a result of its natural gas trading operations, and had problems with structured investment vehicles and other trouble spots related to the credit crisis.
BMO isn't alone. Last month, Canadian Imperial Bank of Commerce shed 100 positions in its capital markets operations. Other banks are also considering scaling back, including Scotia Capital, industry sources have said.BANK OF MONTREAL (BMO)
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