TD Bank, one of Canada’s largest financial institutions, is undergoing significant workforce changes as part of its cost-cutting measures. The lender confirmed it will lay off approximately 2% of its employees following substantial regulatory scrutiny over anti-money-laundering deficiencies. The affected roles span across various departments, including risk management and direct investing.
Workforce Adjustments and Office Return Dates
As part of its restructuring efforts, TD Bank has also mandated a phased return to the office. Starting in November, employees will be required to work from the office at least four days a week. However, some teams may not resume a full-time office presence until as late as early 2026.
Focus on Remediation and Future Investment
Meghan Thomas, a spokesperson for TD, stated that the bank is committed to improving efficiency and simplifying operations. Despite the job cuts, TD is also investing in future capabilities, including advancements in advice delivery, digital solutions, and data-driven initiatives. This strategic move aims to foster a culture that meets the demands of the digital age.
Context of Job Cuts
TD’s layoffs follow similar cuts from other financial institutions, including the Bank of Nova Scotia and EQ Bank. The restructuring plan will utilize measures like attrition to minimize the impact of job losses, with further reductions expected over the next few quarters.
Recently, TD Bank recorded a $262-million charge related to its U.S. restructuring efforts, which included the sale of loans to comply with regulatory asset caps. In September, the bank launched a turnaround strategy designed to enhance share price and streamline operations. This initiative will see the recruitment of 1,200 advisors and private bankers in the wealth management sector, as well as hundreds of new hires for compliance and anti-money-laundering roles.
In conclusion, TD Bank’s adjustments reflect a broader trend across the banking industry as institutions navigate the complexities of regulatory compliance and operational efficiency.
