Scotiabank Layoffs: 3,000 Employees Let Go as Restructuring Continues

Scotiabank (Bank of Nova Scotia) confirmed in January 2026 that it eliminated approximately 3,000 positions through a multi-month restructuring program conducted late in 2025.

Speaking publicly, CEO Scott Thomson said:

“Three thousand people ended up leaving the building.”

Scotiabank reduced its workforce as part of a broader strategic shift to streamline operations and reallocate resources toward higher-growth areas.

This page explains:

• How many employees Scotiabank laid off
• Why the layoffs occurred
• What Scotiabank said publicly
• What federal law requires
• What affected employees should know before signing any severance offer

How Many People Did Scotiabank Lay Off?

According to the Financial Post (January 6, 2026), Scotiabank let go at least 3,000 employees through a restructuring initiative that took place late last year [Financial Post].

The layoffs are tied to:

• A multi-quarter restructuring program
• Workforce rationalization in lower-growth areas
• A $373 million restructuring charge recorded in Q4 2025

The bank indicated that the reductions primarily affected areas not expected to grow at “outsized rates” going forward.

When Did the Scotiabank Layoffs Happen?

Reports of layoffs first surfaced in October 2025, when employees indicated reductions were occurring across divisions [Samfiru Tumarkin LLP].

In December 2025, the bank recorded restructuring and severance-related charges of $373 million, primarily due to workforce reductions

The total scale of the layoffs — 3,000 employees — was publicly confirmed in early January 2026.

Why Is Scotiabank Cutting Jobs?

Scotiabank described the layoffs as part of a strategic restructuring effort designed to:

• Improve efficiency
• Reallocate resources to growth areas
• Enhance profitability
• Take advantage of emerging technologies

Despite the restructuring charge, the bank exceeded analyst expectations in its final quarter of 2025, posting stronger results in global banking and markets

Like other major Canadian banks, Scotiabank is reshaping its workforce while pursuing long-term strategic objectives.

Are Scotiabank Layoffs Happening Across Canada?

Yes.

The restructuring affected employees across Scotiabank’s global operations, including roles in Canada.

As a federally regulated employer, Scotiabank falls under the Canada Labour Code for most non-unionized employees, rather than provincial employment standards laws.

What Scotiabank Employees Should Know After a Layoff

If Scotiabank laid you off, understand this:

• The bank rarely offers the maximum severance amount up front
• Severance packages often exclude bonuses and incentive compensation
• The Canada Labour Code may give you stronger protections
• You can often negotiate deadlines in termination letters

When Scotiabank restructures, it typically presents employees with a Scotiabank severance package that may not reflect their full legal entitlement.

Scotiabank Layoffs: Frequently Asked Questions

How many employees did Scotiabank lay off?

Scotiabank confirmed that approximately 3,000 employees were let go through a restructuring program in late 2025.

When were the layoffs announced?

Workforce reductions occurred in late 2025, with public confirmation provided in January 2026.

Why did Scotiabank restructure?

The bank cited efficiency improvements, strategic reallocation of resources, and a focus on long-term profitability.

Are Scotiabank employees covered by federal law?

Yes. Most non-unionized employees are governed by the Canada Labour Code.

Get Clarity Before You Accept Any Offer

Large restructuring announcements often come with pressure to sign quickly.

If you’ve received a severance offer following the recent Scotiabank layoffs, taking time to understand your legal position can make a significant financial difference.

A brief review of your situation can confirm whether your compensation reflects what you’re legally owed — not just what’s being offered.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.