EQB cuts 8% of its workforce and takes $85 million in charges as part of efficiency overhaul
EQB Inc., parent of Equitable Bank and EQ Bank, will cut about 8% of its workforce and take $85 million in pretax charges as part of a broad restructuring aimed at improving efficiency and sharpening focus on high-return business lines.
The Toronto-based bank said Wednesday that the changes will impact its fourth-quarter 2025 results and that the job cuts will be largely complete by the end of the year. EQB’s common equity tier 1 capital ratio is expected to decline by approximately 10 basis points as a result.
“We are executing on a future-focused plan to focus capital and talent in areas where we have leading growth opportunities and competitive advantages as Canada’s challenger bank,” said President and CEO Chadwick Westlake. “These decisive but difficult decisions focused our efforts and increased productivity to drive positive operating leverage and improved efficiency ratios, while we captured future profitability opportunities and generated strong returns on equity.”
The plan includes approximately $20 million in restructuring and severance charges and $65 million in impairment charges, of which $28 million is related to intangible assets and $24 million is related to the equipment financing business.
Shares under pressure after weak results
The announcement came after EQB released its August earnings report, which showed signs of stress from a slowing economy and a weak housing market, sending the company’s shares down 13%, its biggest intraday drop since 2020.
Bloomberg reported that EQB’s adjusted net interest income fell 6% from a year earlier, while the bank increased provisions for potential bad loans by 60% in the quarter ended July 31. Chief risk officer Marlene Lenarduzzi told analysts that high interest rates and rising unemployment are causing more borrowers to default on their mortgages, especially in the Greater Toronto Area where home prices are down 25 to 30 per cent.
The bank’s adjusted earnings per share for the quarter were $2.07, missing analysts’ expectations of $2.48.
part of wider industry trends
Employment law firm Samfiru Tumarkin LLP said several EQ Bank employees had contacted the company for a severance review after notices of termination were issued on October 22.
The layoffs are part of a broader pattern across Canada’s financial sector this year, with Scotiabank and other major banks also announcing cuts as they try to manage costs and adapt to slower growth and digital transformation pressures.
EQB said it will release full-year 2025 results on December 3, including final restructuring details.
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EQB Equitable Bank layoffs
Last modified: October 22, 2025
