MONTREAL—National Bank of Canada says it’s planning to cut 600 employees—about half through a targeted retirement program—as it adapts to a technological shift in the banking industry.
At the same time, the Montreal-based bank expects to fill 500 other positions over the same period, primarily in sales and service and information technology jobs.
National Bank says it will take a restructuring charge of about $128 million after taxes, or 38 cents per share, in the fourth quarter of its financial year ended Oct. 31.
The bank expects to realize roughly $120 million in annual pre-tax savings.
The company will report its full financial results on Dec. 2.
According to its most recent financial report, National Bank had 19,860 employees in Canada and 1,871 outside the country as of July 31.
“The shift to a digital economy offers tangible growth opportunities for National Bank, but requires us to remain agile and efficient in fully meeting client expectations,” the company’s president and CEO, Louis Vachon, said Thursday.