Bank of Montreal’s capital markets unit is cutting about 100 positions, or 3.5% of the division’s staff, in response to a weak environment for deals.

About half of the jobs lost at BMO Capital Markets are roles in Canada, according to a person familiar with the matter, speaking on condition they not be identified. Executives were meeting with some staff to outline the details early Wednesday afternoon.

“We are focused on managing expenses dynamically, growing revenue and improving our relative efficiency ratio,” Kelly Hechler, a spokesperson for the bank, said by email. “We are working closely with affected employees to provide support and to ensure they are treated with fairness and respect.”

BMO Capital Markets earned C$380 million ($287 million) in the fiscal second quarter ended April 30, a drop of 24% from the previous quarter, amid softer revenue from its global markets arm. The division had grown by about 400 people in two years as it added staff during the strong markets of 2021 and early 2022. The cuts were first reported by the Globe and Mail on Wednesday.

The market for initial public offerings remains weak in Canada. Financing proceeds from IPOs on the Toronto Stock Exchange are down 75% this year through the end of May, compared with the same period last year, according to exchange operator TMX Group.

Bank of Montreal, Canada’s third-largest lender, posted a surprise drop in quarterly profit recently as it set aside a larger provision for loan losses — including a special provision on the loan portfolio of Bank of the West, which it bought from BNP Paribas for $16.3 billion in a deal that closed earlier this year.

--With assistance from Derek Decloet and Geoffrey Morgan.

(Updates with additional information from the second paragraph)