Bank of Nova Scotia BNS-T is laying off staff across its Canadian banking unit, part of the lender’s continued efforts to adjust its businesses through its multiyear turnaround plan.
In recent weeks, the bank has been shedding roles as it reorganizes the division to “accelerate the execution” of the strategic refresh it launched in late 2023.
“While I am increasingly optimistic for the future that we are creating together, I want to acknowledge that a transformation of this scale is not easy, especially when it means saying goodbye to valued colleagues,” Scotiabank head of Canadian banking Aris Bogdaneris said in an internal memo seen by The Globe and Mail.
“These are decisions that we never take lightly and that we manage with care and respect. On behalf of our team, I would like to thank those who are leaving the Bank for their important contributions and wish them all the best in the future.”
The memo said the division’s new operating model is aimed at accelerating the bank’s targets in acquiring primary clients, which are customers that have a daily chequing account as well as another payment or investment product. Its other goals include enhancing mobile capabilities and investing in initiatives with “significant impact to clients.”
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Mr. Bogdaneris said employees will receive regular updates in the days and months ahead regarding changes aimed at improving collaboration and speed, while eliminating activities that take up time and add little value for clients and staff.
“Today marks an inflection point in our quest to build a better, more profitable Canadian bank – one that we are creating together for the benefit of our clients, our teams, and our shareholders,” Mr. Bogdaneris said.
The memo did not specify the number of layoffs, and Scotiabank did not provide further detail.
“Aligning our organization and our resources around our focus areas for growth, including finding ways to be more efficient, are a part of managing our bank effectively,” Scotiabank spokesperson Clancy Zeifman said in a statement. “We will continue to prioritize and invest in areas that best meet the needs of our clients and deliver sustainable growth.”
Two years ago, Scotiabank cut 3 per cent of its global work force a few months before it launched its strategic plan, which reallocated resources to its North American businesses, where it sees bigger opportunities for growth than in its Latin American operations.
The restructuring plans also included exiting some real estate holdings and writing down the value of an investment in China-based Bank of Xi’an Co. Ltd. The move marked chief executive officer Scott Thomson’s first major move to cut expenses after stepping into the top role in February, 2023.
In August, Scotiabank posted third-quarter profit that beat analysts’ expectations. The bank has also improved its profitability metrics, with adjusted return on equity rising to 12.4 per cent, up from 11.3 per cent a year prior.
“BNS reported one of the strongest quarters we’ve seen from the bank in a long time,” National Bank of Canada analyst Gabriel Dechaine said in a note to clients. “Despite the better-than-expected credit performance, the bank maintained cautious/conservative guidance.”