TD Bank is cutting 2% of its workforce as part of a larger restructuring to streamline the organization and reduce costs.TD Bank is launching a new restructuring program starting in the second quarter of 2025, and about 1,900 of its total workforces of about 95,000 will be affected by the layoffs. The bank expects the restructuring to cost about $600 million to $700 million pre-tax over the next few quarters.
On the other hand, it expects cost savings of about $100 million in 2025 alone and $550 million to $650 million annually in the long term. This is the result of not only the workforce reduction but also overall operational efficiency improvements.
The restructuring comes after TD Bank was fined about $3.1 billion by U.S. regulators last year for anti-money laundering (AML) violations. Former CEO Bharat Masrani said, “I deeply regret what happened during my tenure as CEO, and I apologize to all stakeholders.”
In February, Raymond Chen took office as the new CEO. In the recently announced second-quarter earnings report, Chen emphasized, “The restructuring of assets in the U.S. is progressing smoothly, and we are continuously strengthening our anti-money laundering measures.” He added, “Looking ahead to the second half, we will increase the speed and execution of the organization by improving customer experience, strengthening digital capabilities, and streamlining operations.”
TD Bank added that this restructuring is subject to some fluctuation depending on various variables, such as the possibility of personnel reallocation, length of service, and whether the scale of future reductions will be expanded. Meanwhile, Bell Media also announced additional reductions in February, citing “continued management,” and restructuring movements at major Canadian companies are continuing.