Bank remains mum on potential local job losses
Scotiabank, George Town
(CNS Business): Following the announcement last week by Canada’s Scotiabank that it will be closing some 35 branches in the Caribbean region, with a potential loss of over 500 jobs, it is not clear how many of them will be in the Cayman Islands.
Ahead of its fourth quarter earnings announcement next month, the bank said that due to the prolonged economic recovery and continued uncertain outlook it was restructuring in order to improve the speed and quality of service, to reduce costs and to achieve greater operational efficiencies but it has not yet revealed where the cuts will be.
A spokesperson for the bank told CNS that the assessment of the downsizing was not yet complete and would not say if any of Cayman’s three branches would be effected.
“We remain committed to our international operations, but we are closing or downsizing a limited number of branches to optimize market opportunity, minimize overlap and realize synergies from acquisitions,†said Marcelo Gomez-Wiuckstern, the Director of International Banking Communications.
“We recently undertook a review of our operating model and international distribution network and found opportunities to strengthen our retail presence. Since the analysis is not yet complete and our continued efforts to place people, we don’t know the exact impact on specific countries and locations.â€
The bank, he said, would over the coming months continue to provide employees and customers with more information.
With three banks in Cayman, it is unlikely that its employees here will escape the downsizing. Brian Porter, chief executive officer of Scotia, told the regional press that in some Caribbean countries the bank was “just over-branched and we have to size it to the economic realities of these economiesâ€.
In the announcement last week the Canadian bank said that in total some 1,500 jobs would be axed, most in Canada. An estimated 120 branches will be closed, which the bank said would allow it to focus on high-growth markets, minimise branch overlap, and realise synergies resulting from recent acquisitions.
Porter, who has headed up the bank for just twelve months, said the announcement was as a result of making some difficult but necessary decisions to support long-term goals.
“Everyone impacted by these changes will be treated with fairness and respect and deserves our thanks for their important contributions to Scotiabank. We are confident that these initiatives will allow us to continue investing in high-growth areas of the Bank,†he added in a press release.
Category: Employment, Finance, Financial Services, Local Business
The OECD is about to destroy every tax haven as a result banks and other financial institutions are at a disadvantage and will have no other option but to downsize. Very sad indeed for Cayman and other tax free jurisdictions. The OECD has declared that Tax Havens will end by 2018.