EQB Inc., parent of Equitable Bank and EQ Bank, is cutting about 8% of its workforce and taking $85 million in pre-tax charges as part of a broad restructuring aimed at improving efficiency and sharpening its focus on higher-return business lines.
The Toronto-based lender said Wednesday the changes will affect its fourth-quarter 2025 results, with workforce reductions largely completed by year-end. EQB’s Common Equity Tier 1 ratio is expected to decline about 10 basis points as a result.
“We are executing a future-focused plan that concentrates capital and talent where we have leading opportunities for growth and competitive advantage as Canada’s Challenger Bank,” said Chadwick Westlake, President and CEO. “These decisive, yet difficult, decisions focus our efforts and improve productivity to drive positive operating leverage and an improved efficiency ratio as we capture the profitable opportunities ahead and generate strong ROE.”
“We sincerely thank those who are departing for their valued contributions,” Westlake added. “Their talents helped shape a remarkable institution, and we wish them every success in the future.”
The program includes roughly $20 million in restructuring and severance costs and $65 million in impairment charges, including $28 million tied to intangible assets and $24 million relating to its equipment financing business.
Shares under pressure following softer results
The announcement follows EQB’s August earnings report, when shares fell by as much as 13%—the steepest intraday drop since 2020—after results showed signs of strain from a slowing economy and weaker housing market.
Bloomberg reported that EQB’s adjusted net interest income slipped 6% from a year earlier, while the bank set aside 60% more for potentially bad loans in the quarter ended July 31. Chief Risk Officer Marlene Lenarduzzi told analysts that high interest rates and rising unemployment have contributed to more borrowers defaulting on mortgages, particularly in the Greater Toronto Area, where house prices are down 25% to 30%.
The bank earned an adjusted $2.07 per share in the quarter, missing analysts’ expectations of $2.48.
Part of a wider industry trend
Employment law firm Samfiru Tumarkin LLP said several EQ Bank employees have contacted the firm for severance reviews following termination notices issued October 22.
The layoffs are part of a broader pattern across Canada’s financial sector this year, with Scotiabank and other major lenders also announcing job cuts to manage costs and adjust to slower growth and digital transformation pressures.
EQB said it will release its full-year 2025 results, including final restructuring details, on December 3.
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Last modified: October 22, 2025