CIBC to Use Some Savings From Job Cuts for Strategic Investments
(Bloomberg) -- Canadian Imperial Bank of Commerce is looking to “repurpose” some savings from job cuts announced earlier this year for “strategic investments,” Chief Executive Officer Victor Dodig said.
The Toronto-based bank expects to finish a workforce restructuring by the fourth quarter and deliver C$260 million ($198 million) in run-rate savings by the beginning of fiscal 2021, Dodig said Thursday on an earnings conference call with analysts.
“We are repurposing a portion of the expected savings towards targeted, strategic investments,” he said. “To that end, we continue to invest in technology and innovations to simplify our bank and create an engaging and modern banking experience for our clients.”
Dodig told employees at the end of January that he was planning job cuts in a bid to control costs and improve efficiencies. The lender -- Canada’s fifth-largest -- took a C$339 million charge to cover severances in its fiscal first quarter. CIBC said at the time that the reductions would affect almost 5% of its workforce, equal to about 2,200 employees, in what would be the biggest cut in two decades.
CIBC had 43,952 full-time employees at the end of July, down from 45,083 at the end of January, according to financial disclosures.
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