Vancity, the largest community credit union in Canada, has announced that it will be laying off seven percent of its workforce, affecting nearly 200 employees. This decision comes after a challenging year of losses and increasing costs for the credit union.
According to the CEO, Wellington Holbrook, Vancity ended the year with a net loss of $1.3 million after tax, as stated in the 2023 annual report. The lack of profitability has prevented the credit union from sharing dividends with its members, despite previous successful years.
Holbrook explained that the decision to restructure and downsize the workforce is necessary to adapt to current market conditions and support future growth. The CEO pointed out that rising costs and the significant increase in interest rates have posed challenges for Vancity. Many of the loans issued by the credit union were at historically low interest rates, leading to decreased demand for new loans as interest rates rose.
In response to the layoffs, Vancity has stated that it will provide affected employees with a comprehensive compensation package, as well as support for their health, well-being, and careers. The credit union aims to ensure that the transition for laid-off workers is fair and equitable.
Despite the difficulties faced by Vancity in the past year, the credit union remains committed to its members and has set aside reserves to cover any unforeseen contingencies. Holbrook emphasized the importance of preparing for economic challenges and ensuring the stability of the organization in the long run.
While Vancity has not provided further comments on the layoffs, CBC News has reached out to the B.C. General Employees’ Union for their perspective on the situation. As Vancity works towards recovery and future growth, the credit union will continue to prioritize the well-being of its employees and members.