The Bank of Nova Scotia says it’s cutting about three per cent of its global workforce because of changes to its operations and customers’ preferences, as well as ongoing efforts to streamline operations.
The reductions amount to about 2,700 jobs, based on the Canadian bank’s total staff of 91,013 employees as of July 31.
The restructuring charge, severance provisions and a writedown on an investment in a Chinese bank will amount to a $590 million, or 49 cents a share, hit to earnings in the fourth quarter, the bank said in a statement on Oct. 18.
The restructuring charges also include the cost of exiting real estate and other contracts.
The bank announced impairment charges of $280 million, after taxes, related to the bank’s investment in Bank of Xi’an Co. Ltd., whose market value has remained below Scotiabank’s carrying value for a prolonged period, as well as impairment of certain intangible assets including software.
Royal Bank of Canada analyst Darko Mihelic said the charges should not come as a surprise following a review of Scotiabank’s strategic direction.
The largest American banks have been quietly laying off workers all year — and some of the deepest cuts are yet to come.
Even as the economy has surprised forecasters with its resilience, lenders have cut headcount or announced plans to do so, with the key exception being JPMorgan Chase , the biggest and most profitable U.S. bank.
Pressured by the impact of higher interest rates on the mortgage business, Wall Street deal-making and funding costs, the next five largest U.S. banks have cut a combined 20,000 positions so far this year, according to company filings.
The moves come after a two-year hiring boom during the Covid pandemic, fueled by a surge in Wall Street activity. That subsided after the Federal Reserve began raising interest rates last year to cool an overheated economy, and banks found themselves suddenly overstaffed for an environment in which fewer consumers sought out mortgages and fewer corporations issued debt or bought competitors.
“Banks are cutting costs where they can because things are really uncertain next year,” Chris Marinac, research director at Janney Montgomery Scott, said in a phone interview.
Job losses in the financial industry could pressure the broader U.S. labor market in 2024. Faced with rising defaults on corporate and consumer loans, lenders are poised to make deeper cuts next year, said Marinac.
“They need to find levers to keep earnings from falling further and to free up money for provisions as more loans go bad,” he said. “By the time we roll into January, you’ll hear a lot of companies talking about this.”
Banks disclose total headcount numbers every quarter. While the aggregate figures mask the hiring and firing going on beneath the surface, they are informative.
The deepest reductions have been at Wells Fargo and Goldman Sachs , institutions that are wrestling with revenue declines in key businesses. They each have cut roughly 5% of their workforce so far this year.
At Wells Fargo, job cuts came after the bank announced a strategic shift away from the mortgage business in January. And even though the bank cut 50,000 employees in the past three years as part of CEO Charlie Scharf’s cost-cutting plan, the firm isn’t done shrinking headcount, executives said Friday.
There are “very few parts of the company” that will be spared from cuts, said CFO Mike Santomassimo.
“We still have additional opportunities to reduce headcount,” he told analysts. “Attrition has remained low, which will likely result in additional severance expense for actions in 2024.”
But there is good news!
If you’re affected by this or know someone who is, I might be able to help you.
Because guess who’s NOT laying people off?
Guess who is in HIRING mode?
Your humble correspondent!
We’re growing faster than I can keep up with.
Maybe I can help you?
If you’ve been impacted by layoffs, or just got fired….or….if you have a job but it doesn’t pay enough, then this is for “YOU”.
The layoffs are really getting bad out there.
You may not work at any of those places….
In fact, odds are you probably don’t!
But the layoffs start there and then spiral across the country.
And I know many of you reading this have ALREADY been laid off or fired from your job.
Many more are to come.
So….that’s why I’m publishing this.
Can I help you?
In fact, I tell you this because this is MY story.
And deep down it’s probably your story too.
You see, it doesn’t even have to be a layoff.
It may just be that you’re very unhappy with where you’re at in life.
Unhappy with your job…
Unhappy with your future prospects….
Not crazy about doing what you’re doing for the next 30 years and getting a cheap watch as a gift when you retire.
Oh I have a feeling that my story is going to resonate with you.
You see, I believe deep down we all know we were created ON purpose and FOR a purpose.
A God-given purpose.
Something we were created to do in this world better than anyone else.
I don’t think so.
I think every single one of us has greatness inside of us…and a calling to live the life God created for us!
Not to live someone else’s life.
Definitely not to live a life for your boss or for your job!
How sad is that?
It reminds me of one of my favorite memes:
But as always, there is TRUTH in comedy.
It’s what makes comedy funny, because we can all relate to the underlying truth.
So here’s where it gets really personal.
I didn’t learn that until I was in my 40’s.
I wish I’d learned it earlier.
And I’m telling you because maybe I can help YOU learn it earlier in life.
When I started this mission of the WLTReport back in 2015, I was finally doing MY thing.
Not living for someone else…
Not just punching a clock…
Not just moving papers around into a folder in a beige office for 40, 50 or 60 hours a week.
I was finally doing what God created ME to do…and I was changing the world (in my own little way) at the same time.
If you’ve never been in that position, I can’t quite describe it to you but it’s magical.
Suddenly, you don’t need coffee or extra motivation to get through the day.
Suddenly, when you’re living out YOUR purpose you have all this natural energy and “work” doesn’t seem like work.
You go from watching and waiting for the clock to hit 5:00 so you can go home to wondering “where did that day go, I could use another 12 hours!”
People ask me all the time how I get so much done around here and they’re fearful I’m going to “burn out”…
Nothing could be farther from the case.
And to quote my friend Christopher Greene, “I’d much rather BURN out than RUST out.”
Let that one sink in a bit.
I believe in this so much and I believe I can help a lot of people who are reading this so much that I actually recorded this video.
This is me, totally from the heart.
Please enjoy (and then if anything in this video resonates with you, scroll down and I will tell you how I might be able to help you too):
So in addition to my mission here at WLTReport, I’ve also been working on this second mission that I started talking about last month.
It’s like Mission x Mission for me…Mission Squared!
And I’ve got about 100 people in my “Inner Circle” who have jumped aboard and are doing it with me and they’re absolutely loving it.
The truth is I’ve been blown away in the past few weeks by the comparison of what we’re doing with this new mission and everything else happening in the world right now.
I’m sure you’ve seen all the headlines.
As I type this, banks are failing…
Banks are being shut down…
Bank Runs are threatening to spread across America…
Big companies are doing mass layoffs…
Tens of thousands at a time, Wave 1, Wave 2, Wave 3, they just keep coming!
All the big names are doing it and no one seems immune: Google, Amazon, Facebook, Walmart, McDonalds, Wells Fargo it’s everywhere!
There’s definitely not a lot of “confidence” or “certainty” anywhere in the system right now.
And yet in the midst of all of that, then I huddle up with my Inner Circle and they’re receiving paychecks!
Life-changing paychecks in many cases.
That’s not my words…
Let me share with you a personal message I received from one person in my Inner Circle.
I’m withholding her name for privacy purposes but she did give me permission to share this.
Read this and try to not let a tear come to your eye as you realize in her own words: “I did not have a Plan B…”
I got that message a few weeks ago but it still pumps me up reading it here again!
And that’s not the only one.
They come in all the time, people so grateful for the opportunity to live THEIR purpose and join our Mission!
Making money and having fun doing it all at the same time.
I’ve redacted some personal information, but check out three messages I just received recently from some good friends in the Inner Circle:
Ok, can I show you just a few more?
Sorry but I’m so proud of these people who have jumped in and changed their lives.
Here are a few more:
Now I have to give my standard disclaimer: RESULTS ARE NOT GUARANTEED. I can’t promise you will do well or earn a ton of money. The only thing I can promise you is the OPPORTUNITY. And those who work hard and put in the effort and have drive and determination have tremendous opportunity here.
No promises, no guarantees in life.
But if you work hard and don’t give up and know how to take life by the horns and dig in?
Then you might just do very well.
But the reality is stuff like this comes in all the time and it pumps me up so much!
Not only is our mission changing lives but the people working with me in the Inner Circle are having THEIR lives changed right along with it.
As I said at the very beginning of this article, this is NOT for everyone, but it might be for you…
….if you’re a high performer…
….if you want to earn a supplemental income working with me…
….and most importantly if you’re a NICE person…..
….if your heart is beating fast right now knowing that everything I’ve typed above and everything in my video above is like it’s speaking DIRECTLY to you.
If that’s you, I want to connect with you.
I can’t make any promises, and I can’t even promise we will have any slots open, but if this speaks to you then I want you to send me your information and someone from my Inner Circle will get back to you if/when we have something open.
UPDATE: As of right now, we are currently FULL with over 200 workers on our Mission. I am still accepting submissions but just understand you will be placed on a Wait List until more opportunities open up. Thank you!
Thanks for reading.
I can’t wait to see who this helps over the next month, 6 months, year or more.
We’re changing lives and I absolutely love it!
This is a Guest Post from our friends over at WLTReport.