TD Bank, one of Canada’s largest financial institutions, has announced it will lay off approximately 2% of its global workforce as part of a significant corporate restructuring initiative launched in the second quarter of 2025.
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With a total employee base of around 95,000, the layoffs are expected to impact thousands of workers, though the bank has not disclosed exact numbers or which departments or regions will be most affected.
Why TD Bank Is Cutting Jobs
According to TD Bank, the layoffs are part of a cost-reduction strategy aimed at streamlining operations, improving efficiency, and reducing its cost base across all divisions. The move is expected to cost between $600 million and $700 million pre-tax over the next several quarters, but will generate long-term savings of:
- $100 million pre-tax savings in 2025, and
- Annual savings of $550 million to $650 million pre-tax once the program is fully implemented.
The bank’s leadership says the restructuring will help TD remain competitive in a challenging financial environment and allow it to reinvest in digital innovation, client experience improvements, and operational agility.
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Restructuring Follows $3.1 Billion Fine
The layoffs come in the wake of a massive financial penalty from U.S. regulators. In 2024, TD Bank agreed to pay approximately US$3.1 billion in fines related to anti-money laundering (AML) failures.
Former CEO Bharat Masrani, who oversaw the company during the AML compliance issues, publicly apologized in October 2024, calling it “a difficult chapter in our Bank’s history.”
Masrani stepped down in February 2025, and was succeeded by Raymond Chun, who is now leading the bank’s restructuring and recovery plan.
New CEO Focused on Streamlining Operations
In a recent Q2 earnings report, Chun stated:
“We are making consistent progress on AML remediation and restructuring our U.S. balance sheet. This transformation is about more than just reducing costs—it’s about building a simpler, more agile TD Bank that delivers excellence in client service and digital innovation.”
While Chun acknowledged the layoffs were a “difficult but necessary decision,” he emphasized that the bank is positioning itself for long-term strength and adaptability.
Uncertainty Ahead for Employees
TD’s restructuring program may be subject to further changes, depending on variables such as:
- Talent redeployment opportunities
- Employee years-of-service
- Internal decisions on expanding or scaling back restructuring actions
The bank has not indicated whether more layoffs will follow or if severance packages will be provided.
TD Bank Joins Growing List of Canadian Layoffs in 2025
TD Bank is one of several major Canadian companies to announce job cuts in 2025, following similar actions by:
- Bell Media, which revealed significant staffing reductions earlier this year
- Other large corporations across the tech and telecommunications sectors are responding to economic pressure and operational shifts
Final Thoughts
While TD Bank’s cost-cutting efforts are positioned as a step toward modernization and digital transformation, the layoffs mark a turbulent moment for employees and shareholders alike. The financial sector remains under pressure as institutions juggle regulatory compliance, customer expectations, and economic headwinds.
Workers and clients alike will be watching closely to see how TD’s restructuring unfolds through the remainder of 2025.