Banking giant bids to streamline costs, strengthen profitability
The Bank of Nova Scotia (Scotiabank) is set to reduce the size of its Canadian banking division, cutting jobs in a bid to strengthen profitability in the long term.
The Globe and Mail reported that the banking giant's head of Canadian banking Aris Bogdaneris confirmed layoffs in an internal note seen by the publication.
Scotiabank spokesperson Claire Dawson told the Canadian Press the bank was aiming to invest in areas that deliver sustainable growth and meet clients' needs, but did not provide details on how many jobs would be lost.
The bank has quietly reduced its Canadian retail banking workforce in recent weeks, as the lender sharpened its focus on cost controls and profitability ahead of its upcoming earnings announcement on December 2.
“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,” Bogdaneris said, according to 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 internal memo outlined a new operating model aimed at acquiring more primary clients—customers with both chequing accounts and additional products—while enhancing mobile capabilities and investing in client-impact initiatives.
“Today marks an inflection point in our quest to build a better, more profitable Canadian bank,” Bogdaneris said.
Scotiabank’s recent financials have shown improvement, with third-quarter profit beating analyst expectations and adjusted return on equity rising to 12.4%.
Still, the bank’s share price recently dipped to C$89.67, and investors are watching closely to see if cost-cutting and its US investment in KeyCorp, which is expected to deliver around C$74 million in net income this quarter, can offset domestic headwinds.
Canadian banks are increasingly taking a low-profile approach to workforce reductions, reflecting heightened sensitivity to public perception and regulatory scrutiny.
At the same time, cross-border investments and digital transformation remain central to growth strategies, as lenders seek to diversify revenue streams and improve client experiences.
Canada’s top banks have drawn attention lately, as Office of the Superintendent of Financial Institutions (OSFI) head Peter Routledge said last week he was looking at ways to boost competition in the sector.
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