More layoffs to come?

More layoffs to come?

More layoffs to come? Expect more cuts to come, says one broker, following the announcement that one big bank has axed 1,500 jobs.

“I think there will be more job cuts at Canadian Banks; Scotia was just the beginning,” Ron Butler of Verico Butler Mortgage wrote on “Brian Porter timing was smart, he was the first to do what all the banks will eventually do: eliminate internal staff positions. Keep the client facing staff in place but use technology and plain old "work harder for the same pay" to pick up the slack on the jobs cuts.”

Last week, Scotiabank announced it will lay off 1,500 people at a cost of $148 million.

“Scotiabank … announced that it expects to record certain charges in its fiscal 2014 fourth quarter earnings, aggregating to a total of approximately $451 million pre-tax, or $341 million after tax,” an official release from the bank states. “The Bank has initiated certain restructuring initiatives in order to improve the speed and quality of service it provides its customers, to reduce costs in a sustainable manner, and to achieve greater operational efficiencies.”

Those “efficiencies” will come from across the Canadian operation.

Scotia isn’t yet specifying which divisions will bear the heaviest brunt of the cost-cutting, although it singles out wealth management operational support as one area that will see significant cuts. It is worth noting that two thirds of the reductions will be in Canada.

One former Scotia employee – and current mortgage broker – recognizes the move as a bid to become more competitive and efficient.  

“As a former Scotiabank employee for 28 years, I can understand how conservative and proactive is the Bank's mandate and direction,” Angelo Wong-Liao of Invis the Money Lady wrote on “To start tighten up now and to shed jobs for operational efficiency to compete internationally is a proactive approach.”
  • steve kates v.p. 2014-11-14 1:16:09 PM
    its all about there share holders return, not employees
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  • Joel Sida Mortgage Broker 2014-11-14 1:42:14 PM
    It's always about the return
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  • Andrea Taylor 2014-11-15 12:15:56 PM
    Is it just me or is anybody else concerned about a Canadian corporation, one of our banks, Scotiabank for example. Record earnings of approximately $5.6 billion, profit to date as of October this year, and they are laying off approximately 900 employees in Canada? And they say they are concerned about our economy and the unemployment rate? How much is enough for the people (and I use that term politely) at the top? How much greed are we as a society going to tolerate? This smells like what happened in the U.S. with the big bail outs and the monies not trickling down past the executive floor.
    Scotiabank should be ashamed of themselves! Being in the business I know I will never refer a client to them again. They're motto should be "We're richer than you think", not "You're richer than you think". I hate over legislation by the government as much as the next person, but our government owes the citizens of this country a stable economy and with our government allowing greedy corporations to get away with ruining 900 families' lives because their shareholders want a bigger piece of the pie, well, that's just wrong and immoral! So, really in their own way Scotiabank is contributing to the downturn of the Canadian economy! Kudos to them for assisting in being the masters of their own demise!
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