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TD Bank said in May that it would reduce its work force by 2 per cent.Sean Kilpatrick/The Canadian Press
Toronto-Dominion Bank TD-T is laying off staff and staggering its four-day return-to-office mandate as the lender continues to cut costs to address remediation efforts stemming from its anti-money-laundering failings.
In its second-quarter earnings in May, Canada’s second-largest lender said it would reduce its work force by 2 per cent. The bank has been identifying opportunities to expand its businesses after U.S. regulators and law enforcement levied severe and costly penalties over the bank’s anti-money-laundering deficiencies.
The job losses span across several divisions, including direct investing, risk management and corporate functions, according to three sources. The Globe is not identifying the sources because they are not authorized to speak publicly.
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“We previously announced a restructuring program (Q2) focused on streamlining how we operate to build a simpler and faster bank,” TD spokesperson Meghan Thomas said in an e-mail statement.
“At the same time, TD continues to invest in talent and the capabilities that we need for the future, including substantial investments in front line advice, digital, and AI and data-driven solutions.”
In July, The Globe revealed that TD was the fourth major lender requiring staff to work from the office four days a week. At the time, the bank said that many of its locations will be prepared to accommodate the new rule by Nov. 3, but it would take some time to ensure others are ready.
As the date approaches, some teams have been told they will not return to the office on a more full-time basis until early 2026, according to two of the sources.
“We continue to progress with our plans to increase the amount of time colleagues are spending together in-person, in line with our previously announced plans to adopt a four day in office model,” Ms. Thomas said.
“Our executives have already moved into this model and starting in November, non-executive colleagues will return to a four day minimum, with some phased in transitions by region or business.”
TD’s layoffs add to a series of recent job cuts by Bank of Nova Scotia BNS-T and EQB Inc. EQB-T, the parent of EQ Bank.
When TD announced the restructuring plan, the bank said the staff cuts would be done in part through attrition. Some of the employee reductions were completed in the second quarter, with the remaining expected over the next several quarters.
The restructuring program also includes reducing expenses across real estate, certain business exits and other measures.
In its third-quarter earnings in August, TD booked a $262-million charge from its U.S. balance sheet restructuring efforts, including selling loans to stay under the regulatory asset cap levied on its U.S. retail bank.
TD unveiled its turnaround strategy in September aimed at reviving its share price, streamlining its businesses and renewing its culture. The plan includes bolstering its wealth management business by hiring 1,200 advisers and private bankers.
The bank has also hired hundreds of new anti-money-laundering and compliance employees as part of its remediation efforts.
