Banking giant streamlines operations, cuts payroll
EQB Inc., the parent company of Equitable Bank, announced it would cut approximately 8% of its workforce and take a pre-tax charge of around $85 million as part of a broad restructuring plan aimed at sharpening its competitive edge in the Canadian financial sector.
The restructuring will impact nearly 160 positions based on the company’s third-quarter headcount of close to 2,000 full-time equivalent employees.
The move is designed to “concentrate capital and talent where we have leading opportunities for growth and competitive advantage,” Chadwick Westlake, EQB’s president and CEO, said in a statement.
“These decisive, yet difficult, decisions focus our efforts and improve productivity to drive positive operating leverage and an improved efficiency ratio as we capture the profitable opportunities ahead and generate strong ROE,” Westlake said.
The restructuring charge includes about $20 million in severance and related costs, with impairment charges of $65 million.
Of the impairment, $28 million is tied to intangible assets as the company prioritizes high-return initiatives, and $24 million relates to its equipment financing business, which has faced headwinds from challenging market conditions.
EQB expects the workforce reduction to be “substantially complete” by the end of the fourth quarter of 2025, with further details to be provided alongside its fiscal 2025 results on December 3.
The company’s leadership emphasized its commitment to supporting departing employees. “We sincerely thank those who are departing for their valued contributions. Their talents helped shape a remarkable institution, and we wish them every success in the future,” Westlake said.
The restructuring’s impact on Equitable Bank’s CET1 ratio is expected to be approximately 10 basis points.
EQB’s restructuring comes amid a period of heightened competition and margin pressure in the Canadian mortgage and banking sector. The Bank of Nova Scotia (Scotiabank) is also set to reduce the size of its Canadian banking division, cutting jobs in a bid to strengthen profitability in the long term.
EQB operates Equitable Bank, Canada’s seventh largest by assets, and ACM Advisors, which focuses on alternative assets. As of July 31, 2025, EQB reported $137 billion in combined assets under management and administration.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
