Canadian Imperial Bank of Commerce (CIBC) is looking to use some cost savings from job cuts announced earlier this year for strategic investments, Bloomberg quoted the banks’ CEO Victor Dodig as saying.
In an earnings call, Dodig said that the bank is about to complete a workforce overhaul by the fourth quarter this year and achieve C$260m ($198m) in run-rate savings by fiscal 2021.
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Dodig said: “We are repurposing a portion of the expected savings towards targeted, strategic investments.
“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.”
Earlier this year, Dodig notified the staff that the bank is planning layoffs in a bid cut costs and improve operational efficiencies.
Canada’s fifth-largest bank recorded a charge of C$339m in severance pay in Q1 2020, the report added.
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By GlobalDataIn February, CIBC Q1 2020 beat analyst forecasts with a 3% rise in net income to C$1.21bn.
However, the earnings release was overshadowed by CIBC’s plans to reduce its headcount by 5%, which equates to a loss of around 2,250 jobs.
As of July 2020, CIBC employed 43,952 people in full time roles, down from 45,083 as of January, Bloomberg reported citing the company’s financial disclosures.
