Re:Scotiabank to Lay Off 3% of Workforce, Take $432M Charge ...
by alephnerd on Wednesday October 18, 2023 @11:52PM
(#37938154)
From the article, the layoffs are happening because of the Chinese economy.
According to Chinese language media, it appears ScotiaBank is laying off their "global workforce" (read: Chinese operations)
They had to do a significant writedown because they were overexposed to Bank of Xi'an, whose share price has collapsed 75% from their peak, around which time ScotiaBank began overhiring.
Furthermore, Bank of Xi'an is a commercial bank, so it is overexposed to the ongoing real estate bust.
This isn't the first time something likr this happened in China - there was a similar recession in 2015-16 - but it seems Western institutions are much more exposed now in spite of the ongoing trade war.
According to Chinese language media, it appears ScotiaBank is laying off their "global workforce" (read: Chinese operations)
They had to do a significant writedown because they were overexposed to Bank of Xi'an, whose share price has collapsed 75% from their peak, around which time ScotiaBank began overhiring.
Furthermore, Bank of Xi'an is a commercial bank, so it is overexposed to the ongoing real estate bust.
This isn't the first time something likr this happened in China - there was a similar recession in 2015-16 - but it seems Western institutions are much more exposed now in spite of the ongoing trade war.