A real estate consolidation and workforce reductions have hurt Scotiabank’s bottom line.

Toronto-based Scotiabank announced that its fourth-quarter results will be adjusted as a result of pre-tax costs of $87 million related to the consolidation and exit of certain real estate premises and service contracts. The bank also took a $341-million pre-tax hit related to workforce reductions of 3% globally.

The bank said its employee-reduction costs were tied to “end-to-end digitization, automation and changes in customers’ day-to-day banking preferences, as well as ongoing efforts to streamline operational processes and create capacity to invest in key growth opportunities.”

The total hit to Scotiabank’s bottom line was $590 million. Scotiabank said it also incurred $355 million in pre-tax impairment charges tied to its investment in China’s Bank of Xi’An, whose market value has remained below its carrying value for a prolonged period, and an impairment of certain intangible assets including software.

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