Bank revealed $373 million restructuring and severance charge, but surpassed expectations for Q4 2025
The Bank of Nova Scotia eliminated roughly 3,000 roles late last year, according to CEO Scott Thomson.
The country’s third‑largest bank confirmed at an event this week that the reductions were concentrated in parts of the business where leaders no longer expect “outsized” expansion, as the lender looks to streamline operations and lean more heavily on technology.
Thomson framed the cuts as part of a multi‑month restructuring program that began in 2025 and culminated toward the end of the bank’s fiscal year, which closed Oct. 31.
Restructuring charge underscores scale of shift
Scotiabank disclosed a restructuring and severance charge of about $373 million related primarily to workforce reductions across its global footprint. The program ultimately saw at least 3,000 people leave the organization, according to reporting by the Financial Post.
The bank has indicated it doesn’t expect further restructuring charges tied to the same program, while signalling that efficiency and technology adoption will remain central to its operating strategy. “We do not anticipate additional charges, but will remain focused on running our bank as efficiently as possible, including taking full advantage of emerging technologies,” Thomson told various media last month.
Toronto-Dominion Bank also reported laying off approximately 2% of its global workforce, or around 2,000 employees, in May 2025. This move was part of a broader restructuring plan aimed at cutting costs and accelerating investments in digital technology and artificial intelligence.
Thomson has said the affected positions were largely in parts of the bank where management believed it could “rationalize” roles given its future focus. Those jobs were mainly in areas the bank did not expect to grow at “outsized rates,” the Financial Post reported.
Scotiabank has not provided a detailed geographic breakdown of the 3,000 roles, but previously characterized the reductions as spanning its worldwide operations.
Layoffs followed months of internal anxiety
Hints of job cuts surfaced before the bank formally quantified the reductions. At least five employees, speaking anonymously, reported layoffs in October as the lender moved through phases of the restructuring, according to the Financial Post.
Despite the size of the restructuring charge, Scotiabank reported that it surpassed analysts’ expectations for the final quarter of its fiscal year, helped by stronger performance in its global banking and markets business.
In earlier coverage of Scotiabank’s restructuring in October 2025, one employment law firm said that the bank has a history of making structural changes that affect Canadian operations and that some workers had reached out to seek advice about severance, according to Metroland Media. For HR leaders, it shows that large‑scale reductions at a national brand are likely to be scrutinized closely for compliance with both employment standards and the evolving common law on reasonable notice.
Scotiabank has explicitly tied its efficiency drive to “emerging technologies,” according to the Financial Post, aligning with broader expectations that automation and AI will reshape banking roles over the next several years.
