Outsourcing in spotlight with CIBC replacing staff

Transparency, communication, outplacement support key to seamless staff transition, say experts
By John Dujay
|Canadian HR Reporter|Last Updated: 05/15/2017
CIBC
CIBC faced a backlash recently after revealing it had decided to outsource some of its Canadian operations to workers in India. Credit: Chris Wattie (Reuters)

Bringing back memories of a “scandal” involving RBC in 2013 — when the bank laid off staff and transferred the work to temporary foreign workers in Canada — CIBC made the news recently.

The bank decided to have its finance department in Toronto train other staff members, who would then train replacement workers in India. The news spread quickly online, with calls for boycotts and customers claiming they were abandoning CIBC.

In a memo to staff, CEO Victor Dodig said he knew outsourcing was not a popular decision, according to the CBC.