Scotiabank has announced 3 percent layoffs of its global workforce. Scotiabank is the latest addition to Canadian banks cutting staff amid continued economic uncertainty.
According to the bank, this retrenchment is being done as part of digitization and automation of the bank. Along with this, consumers’ preferences have to be kept in mind.
The bank’s chief financial officer Raj Viswanathan said at the latest earnings conference last August that cost management is central to the bank. Staffing is part of that. Because the bank is trying to improve its financial condition.
He said, our aim is to show positive operating income every year. Hopefully we can do that again in 2024.
Scotiabank has already started downsizing. In the third quarter of this year, its total number of employees stood at 91 thousand 13 people. However, in the first quarter of this year, the bank had 91 thousand 264 employees.
The bank said it will also take some charges, which after tax will amount to $590 million, or 49 cents per share. They will take this charge in the fourth quarter.
These charges include $247 million after-tax for restructuring and severance and $6.3 million after-tax for exiting certain real estate premises and service contracts.
RBC analyst Darko Mihelic said the bank’s move is a small step in the right direction. Deregulation means cleaning up the balance sheet.
However, Scotiabank did not give any details about the layoffs. Said, November 28 fourth quarter results will have details in this regard.
