Scotiabank announced significant cuts to its global workforce today, noting that about 3% of its staff will be let go.
According to the bank’s 2023 fourth quarter reported results, the cuts result from automation, changes in customers’ day-to-day banking preferences, and ongoing efforts to streamline processes.
Scotiabank noted that the decision will come with a restructuring charge and severance provisions of approximately $247 million ($341 million pre-tax).
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The bank also said it would take on consolidation and contract costs of $63 million ($87 million pre-tax, and impairment charges of $280 million ($355 million pre-tax) related to the bank’s investment in Bank of Xi’an Co. Ltd.
“We expect the savings on the above items to be achieved throughout fiscal 2024 and anticipate full run-rate benefits in fiscal 2025,” stated Scotiabank.
As of July 2023, Scotiabank reported having over 90,000 global employees.
The news comes after the Royal Bank of Canada announced in August that it planned to cut up to 2% of its full-time staff in the fourth quarter.
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