Scotiabank cutting global workforce by 3%

Scotiabank says it’s cutting about three per cent of its global workforce as a result of changes at the bank and customers’ day-to-day banking preferences, as well as ongoing efforts to streamline operations.

The bank also says it will take several charges that total $590 million after-tax for its fourth quarter related to the cuts and other changes it is making.

The charges include $247 million after-tax for restructuring and severance provisions and $63 million after-tax related to the consolidation and exit of certain real estate premises and service contracts.

They also include an impairment charge of $280 million after-tax related to its investment in Bank of Xi’an Co. Ltd., as well as the impairment of certain intangible assets including software.

Scotiabank says it will provide further details when it releases its fourth-quarter results on Nov. 28.

The bank had 91,013 employees at the end of its third quarter.

Scotiabank is the latest of the major Canadian bank to announce staff reductions.

In August, RBC, the country’s biggest bank, revealed in its quarterly earnings that it had cut about one per cent of its workforce since the start of May and was planning to cut up to two per cent more in this quarter, which concludes at the end of October.

CIBC also reported in August that it had 48,718 employees in its third quarter, down 1,709 from the fourth quarter of 2022.