The Bank of Nova Scotia, widely known as Scotiabank, has confirmed it is reducing its workforce in Canada. The layoffs, which began in September, are affecting employees across multiple departments as part of a broader strategic realignment aimed at improving efficiency.
Key Takeaways
- Scotiabank has been conducting layoffs across its Canadian operations since September 2025.
- The bank has not disclosed the total number of employees affected by the workforce reduction.
- The move is part of a strategy to increase efficiency and focus on core growth areas.
- An internal memo acknowledged the difficulty of the changes, and employees reported brief, scripted notifications.
- The layoffs follow a recent announcement regarding the bank's new return-to-office policy.
Bank Confirms Layoffs as Part of Efficiency Drive
Scotiabank has officially acknowledged the recent staff reductions, framing them as a necessary step in its ongoing efforts to streamline operations. In a statement released in late September, the financial institution explained its rationale for the changes.
"Aligning our organization and our resources around our focus areas for growth, including finding ways to be more efficient, is a part of managing our bank effectively," the statement read. The bank emphasized its commitment to reallocating resources to better serve its customers and ensure long-term viability.
The company added, "We will continue to prioritize and invest in areas that best meet the needs of our clients and deliver sustainable growth." However, specific details regarding the number of positions eliminated or the departments most impacted have not been made public.
A Strategic Shift
The workforce reduction is presented as a strategic move to eliminate redundancies and activities that do not directly contribute to client value. This aligns with a broader trend in the financial sector where major institutions are re-evaluating their operational structures in response to changing economic conditions and technological advancements.
Internal Memo Addresses Difficult Changes
Communication to employees has shed more light on the internal perspective of the restructuring. Aris Bogdaneris, Scotiabank's head of Canadian business, addressed the workforce in a memo sent to staff.
In the memo, Bogdaneris acknowledged the human impact of the decision. He stated that "a transformation of this scale is not easy, especially when it means saying goodbye to valued colleagues." This message highlights the difficult nature of the organizational changes being implemented.
He further elaborated on the bank's strategy, explaining that the institution will continue to "deprioritize and eliminate activities that take up too much of our time and add little value to our clients and employees." This suggests a comprehensive review of internal processes is underway to improve overall productivity and focus.
Employee Accounts of the Layoff Process
While the bank's official communications focus on strategy, accounts from affected employees provide insight into how the layoffs were carried out. Several employees, speaking on the condition of anonymity, described a process that felt impersonal and abrupt.
One individual from the human resources department shared their experience, noting that notifications were delivered through a "very scripted" and brief phone call. According to this source, the calls were structured in a way that did not permit follow-up questions, leaving many with unanswered concerns.
The HR employee mentioned that information about the scope of the layoffs spread informally among colleagues. Through these discussions, it became clear that the workforce reduction was not isolated to a single division but was occurring across various parts of the bank.
Timing and Context
The layoffs were initiated shortly after Scotiabank announced a new return-to-office policy, which requires head-office staff to be in the office four days a week. While the bank has not directly linked the two events, the timing has been noted by employees and industry observers.
A Broader Trend in the Canadian Banking Sector
Scotiabank's actions are not happening in isolation. The Canadian financial industry has seen similar moves from other major players as they navigate economic uncertainty and shifting business priorities. This wider context suggests a sector-wide adjustment to new market realities.
For example, in May, Toronto-Dominion (TD) Bank announced its own restructuring program. As part of that initiative, TD Bank stated its intention to reduce its total workforce by approximately two percent. This move was also attributed to a need for greater efficiency and alignment with strategic goals.
"The financial sector is currently undergoing a significant transformation, driven by digitalization, changing customer expectations, and a challenging macroeconomic environment. Workforce adjustments are often a component of these strategic pivots."
Furthermore, Scotiabank's recent actions in Canada follow earlier staff reductions in other regions. The bank has also recently laid off investment bankers in its U.S. and Asia Pacific operations, indicating that the restructuring effort is global in scope. These combined actions paint a picture of a major financial institution actively reshaping its global workforce to adapt to future challenges and opportunities.
