National Bank cutting 'several hundred' jobs, CEO says

The National Bank of Canada is eliminating "several hundred" jobs as part of a restructuring resulting from the economic slowdown.

In an internal memo to employees, CEO Louis Vachon also attributed the decision to "increasingly fierce competition."

The Montreal-based bank did not give a specific figure for the number of job cuts, but said they would mainly affect its Quebec operations.

Vachon said the bank will try to minimize the impact on its 17,298 employees through various steps, including retirements and the elimination of vacant positions.

It expects to record an $85-million charge ($64 million after taxes) in the fourth quarter. The restructuring is expected to generate $35 million in pre-tax savings, mainly in 2016.

National, Canada's sixth largest bank, has reported that profits grew three per cent to $453 million in the third quarter on $1.51 billion of revenues.