National Bank of Canada has made decisions to cut down on administration staff and to release new share offer. Their decision is made due to less people going to local branch for everyday banking. National B
ank of Canada are putting their human resource and focus into expending their technology department rather than local branches. Banks cannot transfer staffs that were administration to do IT work. Even though this decision will cause they a $85 million loss. National Bank of Canada has decided to cut down a few hundred administration staff.
Nowadays, people are operating their banking account more often online rather than going to a actual branch. This has cause decrease in the demand for the administration staff. Therefore, banks are looking for technology experts rather than administration staffs inside branches. This will not increase unemployment rate because job demanded for administration staff are close, but demand for IT experts are open. However, this will effect the age group that is employed.
National Bank are making the right decision by closing branches because in the long run, they are reducing expenses and increase their services once customers are satisfy with the online banking system. This decision is great for the company, but as a matter of fact, they did not consider their employees’ situation after they are laid off.
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