Thursday, February 01, 2007

BMO More ATM's Less People

The Bank of Montreal (BMO) is laying off 1000 workers while making record profits.

At Bank of Montreal, the company earned a profit of nearly $2.67 billion for the fiscal year ended last Oct. 31, compared with $2.4 billion in 2005.

The reason given for these cuts; said with complete ablomp and full of the heartfelt concern;

"It's not staff who really deal with customers face to face," said Ralph Marranca.

Right you don't have staff who deal with customers, you cut them years ago and replaced them with ATM's.

ATM's are the Daleks of the Banking business.

You are forced to use them, contrary to certain bloggers assertions otherwise, because the banks have replaced staff with them.

And BMO has replaced branch expansion with online banking. Which the staff being cut are the IT backbone of.

A spokesman for the bank said the employees affected will include support staff including back office, administrative and technical support workers.

And the guy making the cuts is the outgoing President of the BMO; Tony Gomper who earned this year a cool

Salary:$1,000,000 Bonus:$1,700,000 Subtotal:$2,700,000 -10% chg
Other:$560,454 Share Units:$2,700,000 Option Gains:$4,021,164
TOTAL:$9,981,608 New option grant: 158,200 ($2,700,000)

And who once said this about why you don't layoff staff;

Investment in people, like investment in education, is the single best investment that a Canadian company can make. I think it is very short-sighted to go into massive lay-offs as a strategy, because you’d be throwing away a stockpile of goodwill and future value for the shareholders. I believe that massive lay-offs of that sort point to a failure of management to anticipate the kind of economic environment in which we are going to be operating.

Repeat that out loud, Tony. You and your management are a failure. But you are laughing all the way out of the bank while leaving your staff with the crying towel.

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Feynman and Coulter's Love Child said...

To be fair, the ATM's are far more helpful and personable and knowledgeable than the actual staff inside the bank.

One thinks BMO would vastly improve its service (and its profitability) if inside there was just some Mexican being paid minimum wage to retrieve eaten cards and send possible investers over to the Treasury Branch.

eugene plawiuk said...

Funny you should support a state sanctioned bank; the Treasury Branches thats downright socialist of you. And interestingly they don't charge ATM fees as I noted here