The Canadian Imperial Bank of Commerce (TSX:CM) has announced that it will lay off an undetermined number of staff in an effort to cut costs and become a "more efficient bank."
CIBC Chief Executive Officer Victor Dodig said in the memo to staff that the Toronto-based bank is looking for various ways to "simplify" the bank’s operations and keep costs down.
"This includes reviewing our team to ensure that we are structured to maximize the capabilities of our team, streamline decision-making and further enhance our ability to execute our strategy and priorities," Dodig said.
The layoff announcement follows a string of job cuts and restructuring across Canada’s banking sector over the past few months that include Bank of Montreal (TSX:BMO), Royal Bank of Canada (TSX:RY) and Toronto-Dominion Bank (TSX:TD). The memo did not specify the number of expected layoffs, nor which departments will be impacted.
Dodig said CIBC’s bank efficiency ratio was at 55.5% at the end of 2019, down from over 60% five years ago. He emphasized in the memo that the ratio needs to be improved to make it a better competitor.
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