Scotiabank Posts Record Earnings but Cuts Jobs in Canada Amid Strategic Restructuring

The Bank of Nova Scotia (Scotiabank) is cutting staff across its Canadian banking division, even as it posts one of its strongest profit quarters in recent years. The layoffs mark another step in the bank’s multi-year turnaround strategy aimed at improving efficiency, digital performance, and long-term profitability.

According to The Globe and Mail, the cuts have been unfolding quietly over recent weeks as part of the bank’s ongoing restructuring efforts to “accelerate the execution” of its strategic refresh plan launched in late 2023.

In an internal memo, Aris Bogdaneris, Scotiabank’s Head of Canadian Banking, acknowledged the human cost of the transition:

“While I am increasingly optimistic about the future we are creating together, a transformation of this scale is not easy—especially when it means saying goodbye to valued colleagues,” he wrote.
“These decisions are never made lightly. We manage them with care and respect, and I want to sincerely thank those who are leaving the Bank for their meaningful contributions.”

The memo outlined a new operating model focused on:

• Acquiring more primary clients — those who hold both chequing and investment or payment products;

• Enhancing mobile banking capabilities;

• Investing in initiatives with meaningful client impact.

Bogdaneris emphasized that employees will receive updates in the coming months as Scotiabank implements changes to improve collaboration, speed, and efficiency—while eliminating processes that add little value for customers or staff.

“Today marks an inflection point in our journey to build a better, more profitable Canadian bank—one that benefits our clients, our teams, and our shareholders,”
Bogdaneris stated.

A bank spokesperson, Clancy Zeifman, confirmed that Scotiabank continues to realign its structure and resources around core growth priorities, adding that “investing in sustainable growth areas and meeting client needs” remain top priorities.

This is not the first restructuring wave under CEO Scott Thomson, who took the helm in 2023. Two years ago, the bank reduced its global workforce by 3%, exited several real estate holdings, and wrote down its stake in China’s Bank of Xi’an Co. Ltd.

Financially, Scotiabank remains strong.
For the third quarter of 2025, the bank reported profits above analysts’ expectations, with adjusted return on equity (ROE) climbing from 11.3% to 12.4% year-over-year.

National Bank analyst Gabriel Dechaine noted:

“BNS delivered one of its strongest quarters in recent memory. Despite solid credit performance, management remains prudently cautious in its guidance.”

As of late August, Scotiabank’s shares were trading around C$89.67, with investors watching closely whether cost-cutting measures and the bank’s US investment in KeyCorp—expected to contribute roughly C$74 million in net income this quarter—can offset domestic headwinds.

Industry observers say Canada’s major lenders are increasingly managing layoffs quietly, amid rising regulatory scrutiny and public sensitivity.
Cross-border expansion and digital transformation, however, remain central to Scotiabank’s long-term growth strategy.