Scotia layoffs not yet final

Scotiabank, which last week announced plans to close 35 branches and cut 10 per cent of its Caribbean employees over the next two years, says no decision has been taken so far on the number of layoffs in Barbados.

The Canadian-based financial institution was responding to a statement made by the President of the Human Resource Management Association of Barbados Glenda Gilkes, who, in an interview with Barbados TODAY yesterday, commented directly on the Bank’s restructuring plans.

“I don’t have numbers at the top of my head now, but I know that for example, a group like Scotiabank with branches across Barbados, certainly we are concerned about that, because that could be 200 people, or more. And those things concern us because we don’t have the jobs out there that would really pull those people in,” the HRMAB president said in the recorded interview.

However, the Bank said the figure used was “purely speculative” and not based on any factual information.

Its statement also warned that unrealistic numbers could only cause unnecessary alarm.

“Where possible, the Bank will manage these impacts through attrition and job placement, and when necessary, through severance packages.

“We are simply looking to streamline our operations as we fully intend to remain the leading bank in Barbados.

At this stage, we do not have any details of the impact to Barbados and as we have more information, we will share details first with our employees and customers,” Scotiabank added.

3 Responses to Scotia layoffs not yet final

  1. Anita November 14, 2014 at 7:44 am

    The statement by the HRMAB president is highly irresponsible especially for a practicing Human Resource manager. Should the recorded interview be correct, she should be made to resign her position as President of HRMAB. ICBL should also decide if this is the kind of manager they want heading up their Human Resources Division but that is for them to decide. I wont be renewing my coverage with them since her words sent my daughter who is an employee of the bank into near panic.

  2. Tony Waterman November 14, 2014 at 4:14 pm

    @Anita !!!!! Read this before you Castigate that Lady for speaking truthfully.
    What Does Bank of Nova Scotia’s Restructuring Plan Mean for Investors?
    The Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) made some big announcements that made headlines on all business news outlets. At a glance, this is what was announced:

    The bank will be cutting 1,500 jobs (about 1,000 in Canada)
    It will be closing or downsizing about 120 international banking branches
    It will take a $451 million pre-tax charges in the fourth quarter

    The third point is probably the most worrisome for investors as it will most directly hurt the company’s earnings for the next quarter, expected in December.

    Let’s go through each of the above three points, starting from the bottom and take a look at how this would likely affect investors in the Bank of Nova Scotia.

    $451 million pre-tax charges

    This charge includes everything – from Bank of Nova Scotia’s Venezuelan assets, to its Caribbean hospitality loan portfolio, to plain old retail loans gone bad. Analysts have long questioned its move to venture into Latin America and the Caribbean. The announcement only seems to cement this view and raise analysts’ eyebrows. So how will that play on the bank’s earning’s next quarter?

    Well, it is believed the charges in total are expected to cut the bank’s fourth-quarter diluted earnings by $0.28 cents per share. New CEO Brian Porter said in a statement that he is confident that “our 2014 reported results will be within our financial objectives for the full year.”

    Mr. Porter also says that these initiatives will allow Bank of Nova Scotia to continue investing in high-growth areas of the bank as he intends to create a more streamlined, efficient bank.

    Job cuts and downsizing

    Bank of Nova Scotia also said it intends to slash 1,500 jobs and eliminate roughly 120 international branches. There is no doubt that employees will not be pleased about this move. Last year, the bank reported a record $6.7 billion in net profit. So how does it justify to its employees the termination of their jobs? That’s a question that executives still need to address but they believe that the bank is expected to save expects to save about $120 million annually due to this restricting. However, investors will only see the full benefits of this on the books sometime in 2016.

    Bank of Nova Scotia is also book a restructuring provision of about $148 million in the next quarter, primarily to cover employee severance costs.

    As the days go by, there will continue to be a lot more analysis on these announcements. It will be interesting to see if Bank of Nova Scotia will change its emerging markets strategy, although it doesn’t quite seems so at the moment. For now, it seems like this announcement is indeed likely to prove to be a positive move for the bank in the long-term.

    Do you own bank shares? You won’t want to miss our latest report!

    Is Bank of Nova Scotia’s move part of larger concerns the markets have with Canadian banks? In this FREE report, we cover everything you need to know about Canada’s Big 5 — whether you’re already an investor or are considering buying shares. Simply click here to receive your special FREE report, “What Every Bank Shareholder MUST Know.”
    ANITA!!!! these people are more concerned about their BOTTOM LINE than your Daughters Career, and to them SHE IS DISPENSIBLE and will be CUT if NECESSARY to MAINTAIN their Earnings per share. HRMAB/ICBL needs more people like her. you need to APOLIGISE to her for this RUDE posting.
    I Have BAJANS right here in my City, Ottawa, who work for BNS and who have ALREADY LOST THEIR JOBS after being sent here from Montreal

  3. Tony Waterman November 14, 2014 at 4:32 pm

    @ANITA!!!! Please read this:-At home, Scotiabank has been trying to centralize and automate a number of mid-office functions. Outside Canada, the bank will SHUT or SHRINK 120 branches, largely in MEXICO and THE CARIBBEAN,(Barbados????) to FOCUS on HIGH_GROWTH MARKETS such as CHILE and COLOMBIA. Once made, these changes are expected to SAVE the bank $120-million annually.
    Please not the highlighted TEXT
    The Truth is SUPPOSED TO SET ONE FREE, not IMPALE them on your SPIKE. they made 6.7 BILLION dollars last year, think anout that


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