(Montreal) iA Financial Group abandons the institutional operations of its Capital Markets division, resulting in the loss of 17 jobs.
The Quebec insurer confirmed that 17 employees lost their jobs due to this decision. These professionals had expertise in investment banking. They worked in Montreal and Toronto.
This restructuring also marks the end of the publication of comments from financial analysts on companies listed on the stock exchange.
“As you know, market conditions have been very difficult over the past two years with rising interest rates, limited issuance in the market and low volume of M&A transactions,” explains company spokesperson Pierre Picard.
The Capital Markets activities of the institution, formerly known as Industrial Alliance, will now focus on “advisors and related support services,” the company adds.
Around thirty employees will continue to work for the division. As a whole, iA Financial Group has more than 9,000 employees in Canada and the United States.
The decision adds to a series of recent layoffs in the Canadian financial sector. Financial institutions are cautious at a time when rising interest rates are weighing on the finances of businesses and individuals.
In June, the capital markets division of the Bank of Montreal eliminated around 100 positions, half of which are located in Canada.
The same month, Laurentian Bank announced its decision to eliminate “less than 20 positions” in its Capital Markets division.
Also in June, Desjardins Movement laid off 176 people. This time the employees were associated with personal services and the cooperative’s technology group.
In May, Royal Bank President and CEO Dave McKay acknowledged that the country’s largest bank had overestimated its needs “by thousands of people” at the height of staffing shortages during the pandemic.
At the end of August, Mr. McKay mentioned the abolition of 1,800 positions in order to reduce the institution’s costs.