Scotiabank Layoffs: October 2025 Update + Severance Rights

Scotiabank Layoffs Confirmed Across Canada Amid Major Restructuring

Scotiabank has confirmed widespread layoffs across Canada, marking the latest step in its multi-year effort to streamline operations and reduce costs.

According to an internal memo obtained by The Globe and Mail, and new reporting by The Toronto Star, the bank is eliminating up to 2,495 positions in Toronto and additional roles across the country. The cuts are part of a turnaround plan designed to “accelerate the execution” of Scotiabank’s updated strategic direction.

Ongoing Job Cuts Across Canadian Operations

Multiple Scotiabank employees have contacted Samfiru Tumarkin LLP to report that they’ve been directly affected by this restructuring. The firm first reported in September 2025 that layoffs were underway within Scotiabank’s Canadian operations — news that has now been officially confirmed and quantified.

Key Details From Recent Reports

• Scotiabank notified the federal government in February 2025 that it planned to terminate up to 2,495 employees in Toronto effective June 1, 2025.
• The bank reportedly requested waivers from several obligations under the Canada Labour Code, including:
  • The 16-week written notice to the Head of Compliance and Enforcement.
  • Establishing a joint planning committee to reduce job loss impacts.
  • Providing a statement of benefits to affected workers before termination.
• The federal government later removed the group termination details from its website, stating they were “published in error“

Scotiabank spokesperson Claire Dawson told the Toronto Star that improving efficiency is a normal part of managing operations. “We will contintue to prioritize and invest in areas that best meet the needs of our clients and deliver sustainable growth.”

Scotiabank’s Internal Memo

An internal memo from Aris Bogdaneris, Scotiabank’s head of Canadian banking, outlined the goals of the restructuring:

• Improve collaboration and efficiency across departments.
• Enhance digital and mobile banking capabilities.
• Focus on acquiring “primary clients.”
• Eliminate work that “adds little value” for staff and customers.

Bogdaneris acknowledged that “a transformation of this scale is not easy”, thanking departing employees for their service.

A Pattern of Restructuring and Job Losses

The October 2025 layoffs are the latest in a series of workforce reductions at Scotiabank over the past tow years:

• September 2025: Scotiabank began eliminating positions in its Canadian operations as part of a broad restructuring, following earlier reductions in its US and Asia-Pacific investment banking divisions (including closures in Hong Kong and Australia)
• June 2025: The bank mandated a four-day return-to-office schedule, creating additional strain for employees concerned about job security
• October 2023: Scotiabank announced it would cut roughly 2,700 jobs worldwide — about 3 per cent of its global workforce — to reduce costs and refocus on growth in North America.

Historically, Scotiabank has implemented layoffs in the fall, often just before year-end bonus payouts.

If you’ve been let go — or believe your job may be at risk — you could be entitled to substantial severance pay under Canadian employment law. This guide explains your rights, how severance is calculated, and the steps to take before accepting any package.

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Why Scotiabank Employees Are Covered by Federal Law

Bank of Montreal (Scotiabank) is one of Canada’s largest financial institutions, operating nationwide and across the US. Because Scotiabank is a federally regulated employer, its employees are protected by the Canada Labour Code (CLC) — not a province’s Employment Standards.

This distinction gives non-unionized Scotiabank employees access to stronger legal protections—particularly around terminations and severance rights.

Key rights under the CLC include:

• ✔️ Protection from dismissal without just cause (for most non-managerial employees with 12+ months of service)
• ✔️ The ability to file an unjust dismissal complaint under Division XIV
• ✔️ Potential reinstatement to your role in some cases
• ✔️ Additional compensation for damages or lost income

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Severance Pay Overview for Scotiabank Employees

If you’re a non-unionized employee at Scotiabank and have been laid off, you’re likely entitled to more than the minimum standards listed in your termination letter. Under Canadian law, full severance pay can be worth as much as 24 months’ salary – and must reflect your personal circumstances, not just company policy.

What Scotiabank Severance Should Include:

• ✔️ Base salary
• ✔️ Bonuses (earned and pro-rated)
• ✔️ Commissions
• ✔️ Benefits continuation
• ✔️ Vacation pay
• ✔️ Pension contributions
• ✔️ Car allowance or other perks

Even if you’re classified as an “independent contractor,” you could still qualify for severance if you’ve been misclassified.

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How Scotiabank Calculates Severance Pay

Severance pay is not a flat rate. Scotiabank employees are entitled to severance based on several personal factors that reflect how difficult it may be for them to secure comparable work.

The most common factors include:

• ✔️ Length of service – More years often means more pay. However, short-service workers are often owed disproportionately larger severance packages than longer-serving employees.
• ✔️ Age – Older employees receive more due to job market challenges.
• ✔️ Position – Senior or specialized roles tend to result in higher severance.
• ✔️ Total compensation – Includes not just salary, but bonuses, commissions, and benefits.
• ✔️ Job prospects – If your role is niche or limited in the market, you are entitled to more.

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Timeline of Scotiabank Layoffs

Scotiabank has conducted multiple rounds of layoffs over the past decade, often tied to restructuring, cost-cutting, and shifting business strategy. These job cuts have impacted employees at all levels – both in Canada and abroad.

Below is a timeline of notable layoffs at Scotiabank:

• September 2025: Multiple Scotiabank employees report a large fall restructuring.
• August 2025: The bank cuts staff and closes operations in its US and Asia-Pacific division.
• October 2023: Scotiabank is reducing its global workforce by approximately three per cent as it continues to look for ways to “streamline operational processes.”
• February 2023: Samfiru Tumarkin LLP has been contacted by several Scotiabank employees who claim that the bank is laying off a substantial number of workers.
• October 2015: Scotiabank is laying off an undisclosed number of workers as part of a broader cost-reduction strategy.

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How to Maximize Your Severance

If you’ve been laid off by Scotiabank, it’s critical not to accept their first offer without understanding your full legal rights. Most employees are offered far less than what they’re actually owed, which can be up to 24 months’ pay – especially when bonuses, commissions, or benefits are left out.

Here’s how to protect your financial future and maximize your severance:

1. Don’t sign anything right away.
Scotiabank may give you a tight deadline, but it’s not legally binding.

2. Review your total compensation.
Severance isn’t just about salary – include bonuses, commissions, vacation pay, car allowance, and more.

3. Negotiate enhancements.
You may be able to push for extended health benefits, additional compensation, or even outplacement services.

4. Document everything.
Keep copies of all severance offers, termination letters, and communication with Scotiabank’s HR department.

4. Get a legal opinion.
An employment lawyer at Samfiru Tumarkin LLP can identify issues in your package that you will miss on your own.

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Employer Tactics to Watch For

When a company like Scotiabank initiates a layoff, the goal isn’t just operational efficiency – it’s also cost containment. That often means offering lowball severance packages or pressuring employees to accept quickly. Here are the most common tactics to watch for:

Common Strategies Employers Use During Layoffs:

• ⚠️ Pressure to sign quickly: Scotiabank may set a deadline (e.g. 5 business days) – but this is not legally binding.
• ⚠️ Low initial offers: Many severance packages start far below what’s owed by law.
• ⚠️ Excluding bonuses or commissions: These are often left out, even if you earned them before the layoff.
• ⚠️ Misclassification as a contractor: Some workers are told they aren’t “employees” when in fact they are entitled to full severance.
• ⚠️ Termination clauses: Your employment contract may contain language that attempts to reduce the severance you are owed. In many cases, these clauses are unenforceable.
• ⚠️ Allegations of ‘just cause’: Some employers claim you were fired for misconduct to try to avoid paying severance – often without legal basis.

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Real Legal Cases Involving Scotiabank

Employment lawyers at Samfiru Tumarkin LLP resolve nearly all severance matters without going to court — securing strong compensation quickly and efficiently. But when needed, our team has successfully held Scotiabank accountable in legal proceedings for terminations that violated employee rights. These cases show what’s possible when employers overstep — and what our firm is prepared to do.

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FAQs About Scotiabank Layoffs

Does Scotiabank offer enhanced severance packages?

Yes – but those packages are often designed to minimize what Scotiabank pays. You may be owed significantly more than what’s initially offered, especially if your severance doesn’t include bonuses, commissions, or benefits continuation.

Can Scotiabank lay me off without notice?

Only if you’re given adequate severance pay. If you’re not properly compensated, it may be a case of wrongful dismissal, even in a restructuring.

What if I was let go just before bonus season?

You may still be entitled to a pro-rated bonus or even the full bonus, depending on the terms of your employment and how long you worked during the bonus year.

Do I have to accept the first severance offer?

No. You’re under no obligation to sign immediately – and in most cases, you shouldn’t. Expert legal review is essential to ensure you’re getting everything you’re owed.

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Additional Resources for Scotiabank Employees

Learn more about your severance rights and how the law applies to layoffs in banking and federally regulated industries:

• Severance for federally regulated employees
• Severance pay in mass layoffs
• Severance for banking industry employees
• Understanding layoffs in Canada
• Severance rules in Ontario
• Severance rules in Alberta
• Severance rules in British Columbia

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Lost Your Job at Scotiabank? Get Legal Help Now

If Scotiabank fires you, pressures you into resigning, or cuts your pay, don’t sign anything before speaking to an employment lawyer at Samfiru Tumarkin LL