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City National Bank files layoff notices for Los Angeles jobs

City National Bank files layoff notices for Los Angeles jobs

Money Moves Los Angeles, CA local

The latest in a years-long string of small workforce cuts as Toronto-based parent Royal Bank of Canada squeezes costs

6 days ago: 19 positions cut across two LA sites

Overview

Updated 54 minutes ago

City National Bank told California regulators on September 24 it plans to cut 19 jobs across two Los Angeles locations, effective November 23. The two notices are filings of intent under the federal WARN Act, which requires 60 days' advance warning of a mass layoff, not reports that the jobs have already ended.

The number is small, but it is the latest in a steady run of filings going back to 2023. The Los Angeles institution known as the 'Bank to the Stars' is quietly shrinking as Toronto-based Royal Bank of Canada, which bought it in 2015, pushes to control costs at a US unit that absorbed $285 million in losses in 2023.

Why it matters

The 'Bank to the Stars' is quietly shedding Los Angeles jobs in small waves — each notice takes more local work as its Canadian parent cuts deeper.

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Key Indicators

19
Positions in September 2026 filing
Jobs cut across two Los Angeles sites, effective November 23, 2026.
14
WARN notices filed since 2014
City National layoff notices tracked in California's WARN records.
$65M
OCC fine, January 2024
Penalty from the Office of the Comptroller of the Currency for risk management deficiencies.
$285M
Losses, May–October 2023
Losses City National disclosed from rising deposit costs and unrealized securities losses.

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People Involved

Organizations Involved

Timeline

November 2015 September 2026

10 events Latest: 6 days ago
Tap a bar to jump to that date
  1. 19 positions cut across two LA sites

    Latest Layoffs

    City National files WARN notices for 19 Los Angeles jobs, effective November 23.

  2. 12 positions cut

    Layoffs

    City National files WARN notice for 12 jobs in Los Angeles.

  3. 17 positions cut

    Layoffs

    City National files WARN notice for 17 jobs in Los Angeles.

  4. 24 positions cut

    Layoffs

    City National files WARN notice for 24 jobs in Los Angeles.

  5. 56 more layoffs planned in LA County

    Layoffs

    City National tells California it will cut 56 jobs in Los Angeles County.

  6. OCC fines City National $65 million

    Regulatory

    Regulator fines City National $65 million for systemic risk management deficiencies.

  7. New leadership installed

    Leadership

    Greg Carmichael becomes executive chair; Howard Hammond named CEO, in a fall 2023 shakeup.

  8. 71 permanent layoffs reported

    Layoffs

    City National reports 71 permanent layoffs to California officials.

  9. RBC acquires City National

    Acquisition

    Toronto-based Royal Bank of Canada buys Los Angeles lender City National.

Scenarios

1

City National files more layoff notices as cost cuts continue

Likely Resolves by Q2 2027

Discussed by: RBC CEO Dave McKay's cost-control comments; California EDD WARN filing records

RBC keeps pressing to bring City National's cost structure in line with the size of the organization, the goal McKay stated in early 2024. Expect more small layoff filings with California through 2027, possibly including a shift of roles to British Columbia, a move McKay floated.

2

Royal Bank of Canada sells or restructures City National

Possible Resolves by End of 2027

Discussed by: Banking analysts noting industry-wide expense pressure; precedent of HSBC's US retail exit

Underperformance and repeated regulatory fines could push RBC to follow HSBC's path and exit US retail banking, either selling City National to a regional buyer or merging it with another institution. Any such move would come as a public announcement from the Toronto parent.

3

City National returns to profitability as cuts take hold

Possible Resolves by Q2 2027

Discussed by: RBC management statements on bringing City National's cost structure in line; Fitch Ratings on stabilizing bank expenses

If RBC's cost program works, City National's headcount levels off and the US unit returns to profit. The clearest signal would come from RBC's quarterly earnings, which break out the subsidiary's results.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2021

HSBC exits US retail banking (2021)

HSBC, the London-based giant, agreed in May 2021 to sell its 148-branch US retail network to Citizens Financial Group, retreating from American consumer banking after years of struggling to compete. It kept its wealth and international business units.

Then

Citizens took over the branches in 2022; HSBC exited US consumer lending.

Now

The sale became a template for foreign banks questioning whether US retail operations are worth the cost and compliance burden.

Why this matters now

Like RBC with City National, HSBC found its US consumer arm expensive to run and hard to scale. If RBC reaches the same conclusion, City National could face a similar fate.

2024

TD Bank's US compliance failure (2024)

TD Bank, the US arm of Toronto-Dominion Bank, agreed in October 2024 to pay more than $3 billion and accepted a cap on US retail assets after federal regulators found severe anti-money-laundering failures. The bank pleaded guilty to money-laundering conspiracy charges.

Then

The asset cap froze TD's US growth and the penalty hit the Canadian parent's earnings.

Now

It showed US regulators will punish foreign parents for their American subsidiaries' failures.

Why this matters now

City National already absorbed a $65 million OCC fine in early 2024. The TD case shows how a Canadian parent's US subsidiary can become a compliance liability, a backdrop for RBC's cost-cutting urgency.

Sources

(4)

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