Laurentian Bank of Canada has recently announced its plans to achieve annual cost savings by simplifying its organizational structure. The Canadian bank, primarily operating in Quebec, has initiated restructuring initiatives that are expected to generate approximately 8 million Canadian dollars ($5.9 million) in cost savings per year.
As a result of these restructuring efforts, Laurentian Bank anticipates incurring pretax charges of approximately C$6.5 million in the first quarter. The bank’s Chief Executive, Eric Provost, emphasized the importance of streamlining operations and revitalizing the strategic plan to enhance customer service and fortify Laurentian Bank as a robust Quebec-based institution.
Provost took over leadership of the bank in early October following the departure of former CEO Rania Llewellyn and Chair Michael Mueller after a network outage disrupted online banking services. Since assuming the role, Provost has implemented a three-part plan to address outstanding issues related to the outage, streamline communication with customers regarding service restoration, and conduct a comprehensive review of the factors contributing to the outage.
Laurentian Bank had recently concluded a review of various options, including a possible sale of the company or specific business divisions. In light of this evaluation, the bank has decided to accelerate its current plans with an increased emphasis on efficiency and simplification.