Scotiabank plans to cut about 1,500 jobs—two-thirds of which will be in Canada, including at its head office.
In Canada, the bank will centralize and automate several mid-office branch functions, as well as make reductions in wealth management operational support.
Internationally, the company will close or downsize about 120 branches. And Scotiabank’s global banking and markets division is streamlining certain capital markets businesses and eliminating a small number of positions, primarily in front-office roles.
The bank eventually expects to realize approximately $120 million of ongoing cost savings as a result of this restructuring. These benefits will be fully realized in fiscal 2016, and modest savings are expected in 2015.
Scotiabank is also writing down its investment in Venezuela, taking loan loss provisions in the Caribbean and writing off bankrupt consumer accounts. The bank will record a pre-tax charge of $451 million in the fourth quarter.
Related articles: