CIBC shares fall further as Canadians abandon bank
By Amy Chen
CIBC’s shares fell by more than a percentage point again today as more angry customers ditched the bank in protest over its decision to fire 130 Canadian workers and force them to train their replacements from India.
The CIBC (TSE: CM) stocks closed the day at $113.39, $1.45 down from the previous close.
CIBC’s share price has fallen by $3.81 or 3.25% since CBC broke the news of the outsourcing on March 30, wiping $1.5 billion off the bank’s market value.
Customers continued to abandon CIBC while publicly denouncing the bank and its CEO Victor Dodig.
“I closed my CIBC bank account and moved my money to a local credit union today,” Calgarian John Miller wrote in an open letter to CIBC shareholders. “I’m disgusted by your bank’s decision to fire 130 Canadian workers and put them through the indignity of training their replacements from India.”
“Your CEO Victor Dodig has the moral compass of a fentanyl dealer,” Miller added. “Both are well aware that their actions are destroying families, but, motivated by unbridled greed, they will do anything to maximize their profits.”
“You know if you outsourced the CEO position to India the savings would be enormous, considering he makes more than the 130 Canadian employees combined,” Greg Kemball of Victoria, BC wrote. “Now that your stock is starting to plummet maybe the board of directors could oust this anti Canadian? Food for thought.”
Federal NDP leadership hopeful Charlie Angus joined the chorus of voices calling for a boycott of CIBC.
“Making $1.4 billion in a single quarter wasn’t enough for the honchos at CIBC. Now they want to outsource jobs to India while gouging you on your bank transactions,” The federal MP for Timmins—James Bay said. “I cancelled my CIBC card a few years back. If you want to send a message to corporate Canada you can always vote with your feet. I suggest a regional or local credit union. They have your back.”
The offshoring of jobs to India is a part of CEO Dodig promise to cut $600-million in costs and drive profit growth to 10 per cent a year by 2018.
Dodig defended the outsourcing saying that “Companies that stand still don’t stand the test of time.”
The CEO earned an estimated $8.5 million last year, an increase of 40% from the year before.