Bank of Montreal confirms it is cutting jobs in its capital markets division in line with a slowdown in investments.
The Toronto-based bank (TSX:BMO) wouldn’t confirm reports that 60 jobs will be slashed.
It said the cuts were part of its strategy to keep staffing levels in line with demand in the capital markets environment.
The division, which focuses on investment banking and helping clients raise capital on stock markets, has been struggling as confidence in global markets have been battered by economic turmoil.
“We continue to build our North American platform with a unified approach to client coverage while ensuring staffing levels are commensurate with the capital markets environment,” said spokesman Paul Deegan.
“The reductions are part of our focus on productivity and we would expect to continue to be hiring over the course of the year as we grow our businesses.”
The bank, which is slated to report its first quarter 2012 earnings Tuesday, saw its fourth-quarter profits rise 21% to $897 million.
However, the bank’s capital markets division posted a 30% tumble in profits to $149 million over the same time a year earlier as it contended with volatile market conditions which affected revenues.