Quote:
Originally Posted by king10
didnt CIBC have a huge failed US expansion which played a role in its market cap falling
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Yep, they took a big one on the chin with their poor investments in the US. That's what led to their decline. I know - I used to work for them.
However, they're still a very profitable company.
Quote:
Originally Posted by WhipperSnapper
I wonder how many employees will be laid off while others have their workloads increased or will they just slash more benefits to pay for this new expenditure? I realize it sounds crazy but, this is exactly what happens with every big move. They are not going to dip into their profits.
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You can say that about any company in many situations. Companies often spend a lot of money just to give their clients the optics of being successful - like building a new high-tech and opulent office. Or when companies making bad investments that cut into their profits. Job cuts often happen as a result.
If Scotiabank didn't spend the 800 million on this, they would've spend it elsewhere... whether it's a better or worse investment... and it probably would also result in layoffs.