Scotiabank to Cut 3% of Staff as CEO Thomson Plots New Direction

Lender takes C$590M charge on restructuring, writedowns
Value of investment in China’s Bank of Xi’an is also reduced

Bank of Nova Scotia signage is displayed outside Scotia Plaza in Toronto, Ontario, Canada. The bank will let go of 3% of its employees and take a writedown on an investment in a Chinese bank, leading to a C$590 million ($432 million) hit to earnings in the fourth quarter. — Bank of Nova Scotia signage is displayed outside Scotia Plaza in Toronto, Ontario, Canada. The bank will let go of 3% of its employees and take a writedown on an investment in a Chinese bank, leading to a C$590 million ($432 million) hit to earnings in the fourth quarter.
Photographer: Cole Burston/Bloomberg

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By Christine Dobby

October 18, 2023 at 12:47 PM UTC

Updated on

October 18, 2023 at 6:53 PM UTC

This article is for subscribers only.

Bank of Nova Scotia will dismiss 3% of its employees and take a writedown on its investment in a Chinese bank in a broad restructuring that underscores new Chief Executive Officer Scott Thomson’s focus on cutting costs. It could also be sign that job cuts are coming at other Canadian lenders.

The reductions amount to about 2,700 jobs, based on the Canadian bank’s staff count as of July 31. Toronto-based Scotiabank said it will take a C$590 million ($432 million) charge in its fiscal fourth quarter, equal to 49 Canadian cents a share.