While Canada’s largest banks generally expanded their workforces during and after the pandemic, Scotiabank moved in the opposite direction—cutting nearly 15,000 full-time positions over six years as it restructured its global operations.
An analysis of self-reported employment data from Canada’s Big Five banks shows Scotiabank reduced its full-time head count from 101,380 in 2019 to 86,431 in 2025. Over the same period, its peers increased staffing levels, buoyed by acquisitions and expansion.
The job reductions have weighed on employee morale. In recent months, current and former staff have shared concerns on social media about layoffs tied to what the bank describes as a sweeping restructuring effort.
Earlier this year, Scotiabank notified the federal government that it planned to terminate several thousand workers in Toronto—months before layoffs became public in October.
“I’m likely to be a casualty of the next wave … time to polish up my resumé,” one Reddit user wrote. Another employee said they felt anxious while on extended leave as job cuts unfolded.
‘Right-sizing’ the global footprint
In a statement, Scotiabank spokesperson Claire Dawson said the bank has been “right-sizing” its international business as it repositions its global footprint.
Scotiabank has exited operations in several Latin American countries and is narrowing its focus to core markets in Canada, the United States and Mexico. Over the past decade, the bank has withdrawn from roughly 30 non-core markets, Dawson said—moves that have reshaped its workforce worldwide.
Analysts say cost control is also a factor. Since 2019, Scotiabank shares have delivered the weakest total returns among the Big Five banks—Royal Bank of Canada, TD Bank, Bank of Montreal, CIBC, and Scotiabank.
“If a business isn’t delivering results comparable to peers, management often looks to reduce costs,” said Shalabh Garg, an analyst at Veritas Investment Research. “In banking, the largest expense is human capital. When margins are under pressure, this is the lever many pull.”
Garg added that banks are also grappling with rising technology costs as they invest in systems and explore how to deploy artificial intelligence more efficiently.
Economic risk and trade exposure
Shokhrukh Temurov, an analyst at Morningstar DBRS, said broader economic uncertainty may be contributing to recent layoffs. He noted that Scotiabank’s focus on clients engaged in cross-border trade makes it more sensitive to uncertainty surrounding Canada–United States–Mexico Agreement (CUSMA) negotiations.
“When business activity slows, banking services are affected as well,” Temurov said.
Despite the workforce reductions, Scotiabank reported solid earnings in the fourth quarter and for the 2025 fiscal year. Bank stocks overall also performed well relative to other Toronto Stock Exchange listings this year.
A different path for peers
The other Big Five banks took a contrasting approach, expanding their workforces largely through acquisitions. BMO’s head count grew by nearly 17 per cent following its 2023 purchase of Bank of the West in the U.S. RBC posted similar growth after acquiring HSBC Bank Canada in 2024. TD increased staffing by almost 15 per cent, while CIBC’s workforce rose by about 10 per cent.
The divergent strategies underscore how Canada’s largest banks have navigated post-pandemic uncertainty in markedly different ways—Scotiabank through retrenchment and refocusing, and its rivals through expansion.