TD Bank Lays Off Staff, Phases Return-to-Office Plans
Toronto-Dominion Bank, one of Canada’s largest financial institutions, is in the midst of significant workforce changes as part of a broad cost-cutting and restructuring effort. Around 2% of the bank’s employees are being laid off, a move that comes after regulatory scrutiny and penalties tied to anti-money-laundering deficiencies. These job cuts are affecting multiple areas within the bank, including risk management, direct investing, and corporate functions. While some reductions have already taken place, the remainder is expected to unfold over the coming quarters, partly through natural attrition.
In addition to the layoffs, TD has announced a phased return-to-office plan. Starting in November, employees will generally be required to work from the office four days a week. However, some teams will not resume a full-time office presence until early 2026, as the bank works to ensure all locations are fully prepared. This staggered approach aims to ease the transition while promoting in-person collaboration across departments. TD executives have already adopted this four-day in-office schedule, and non-executive staff will follow suit in the coming months.
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Despite the workforce reductions, TD is continuing to invest in strategic areas to position itself for future growth. Spokesperson Meghan Thomas explained that substantial investments are being made in front-line advice, digital services, and AI- and data-driven solutions. These initiatives are intended to streamline operations, enhance efficiency, and modernize the bank’s culture to meet the demands of a digital-first environment.
TD’s recent restructuring and layoffs reflect a broader trend within the Canadian banking sector, following similar moves by institutions like the Bank of Nova Scotia and EQ Bank. The bank has also taken steps to manage costs through real estate adjustments, business exits, and other operational efficiencies. In its third-quarter earnings, TD reported a $262-million charge related to U.S. balance sheet restructuring, which included selling loans to comply with regulatory asset caps.
Alongside cost-cutting, the bank is pursuing a turnaround strategy aimed at improving its share price and strengthening its operations. This plan includes hiring 1,200 advisors and private bankers in its wealth management division, along with hundreds of new compliance and anti-money-laundering staff to address previous regulatory shortcomings.
Overall, TD Bank’s latest moves underscore the challenges faced by financial institutions as they balance regulatory compliance, operational efficiency, and investment in future capabilities. The bank is clearly working to streamline its operations while preparing for the evolving demands of the digital age.
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