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Bank of Nova Scotia says it will cut 1,500 jobs — two-thirds of them in Canada — and also write down its investment in Venezuela, while setting aside more funds for loan losses in the Caribbean.
Brian Porter, Scotiabank’s president and chief executive officer, said in an investor conference call that the reductions will primarily be in front-office roles. The company will also be changing its management structure, he said.
The company said that 120 branches in the Caribbean and Mexico will be closed or reduced in size.
Porter said there are unlikely to be any closures here in Canada.
“We are comfortable with our footprint in Canada so I wouldn’t expect any branch closings here in the country,” he said.
The company will take a one-time restructuring provision in 2014’s fourth quarter ending October 31 of around $148 million. This will largely relate to severance costs.
The reduction is intended to save the company $120 million annually, with layoffs starting in 2015.
The bank announced that it was writing down the value of its Venezuelan bank by $451 million. The Royal Bank and CIBC have made similar write-downs in the Carribbean.
Scotiabank had record profits of $6.7 billion in 2013. The bank’s 2014 results will be released December 5.
As of press time, shares of Scotiabank were trading at $67.48 – a drop of 1.89%.
Agencies/Canadajournal
