TD Bank Group said Thursday that it's cutting about two per cent of its workforce in an aim to save around $600 million a year as part of a restructuring it started in the second quarter.
The bank announced the reduction as it reported a second-quarter profit of $11.1 billion. The cuts would amount to around 2,000 employees, based on the bank's roughly 101,759 full-time equivalent employees for fiscal 2024.
Earnings were significantly boosted by the bank selling its remaining stake in The Charles Schwab Corp., while the restructuring led to $163 million in pre-tax charges in the quarter. The charges were mostly related to real estate optimization, while it expects around $650 million in pre-tax charges over the next several quarters from severance and other costs.
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The restructuring comes as chief executive Raymond Chun, who took on the role at the start of the last quarter, looks for savings as the bank works to move past its costly anti-money laundering oversight scandal.
"We are well positioned as we enter the second half of the year," said Chun in a statement.
"We are operating in a fluid macroeconomic environment. As we navigate this period of uncertainty, TD is very well-capitalized, prepared for a broad range of economic scenarios, and remains focused on the needs and goals of our clients."
The bank said Thursday the profit amounted to $6.27 per diluted share for the quarter ended April 30, up from a profit of $2.6 billion or $1.35 per diluted share a year earlier.
TD recorded an $8.6-billion gain after tax on the sale of its Schwab shares in its latest quarter.
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On an adjusted basis, TD says it earned $1.97 per diluted share for its second quarter, down from an adjusted profit of $2.04 per diluted share a year ago.
Analysts on average had expected an adjusted profit of $1.76 per share, according to LSEG Data & Analytics.
Revenue for the quarter totalled $22.9 billion, up from $13.8 billion in the same quarter last year, while TD's provision for credit losses amounted to $1.3 billion, up from $1.1 billion a year ago.
TD said its Canadian personal and commercial banking business earned just under $1.7 billion in its latest quarter, down from just over $1.7 billion in the same quarter last year as it saw higher provisions for credit losses and non-interest expenses, partially offset by higher revenue.
TD's U.S. retail operations earned $120 million in the second quarter, down from $507 million a year earlier. The bank's wealth management and insurance business earned $707 million in its latest quarter, up from $621 million a year ago. TD's wholesale banking division earned $419 million, up from $361 million in the same quarter last year.
This report by The Canadian Press was first published May 22, 2025.
