TD Bank Cuts 2,000 Jobs in Restructuring Efforts Following $3B AML Settlement
Toronto-Dominion Bank (TD) is eliminating 2% of its global workforce—about 2,000 positions—as part of a sweeping restructuring effort to reduce costs and accelerate digital transformation. The move follows a $3.1 billion U.S. settlement over anti-money laundering (AML) failures, marking the largest such penalty ever levied against a Canadian bank.
The layoffs are expected to save up to $650 million annually and will include winding down TD’s U.S. point-of-sale financing business. The bank is also closing more than three dozen retail branches across several U.S. states, including New Jersey, Florida, and Massachusetts, as part of a broader effort to streamline operations.
TD's leadership transition is underway, with Raymond Chun stepping in as CEO earlier this year after Bharat Masrani’s retirement. The leadership change is part of a broader governance overhaul, which includes the departure of five board directors and the appointment of four new members with expertise in compliance and risk management.
Despite the restructuring, TD reported a significant increase in Q2 2025 net income, largely due to an $8.57 billion after-tax gain from selling its remaining stake in Charles Schwab.
However, adjusted earnings per share declined, and the bank's adjusted return on equity fell to 12.3% from 14.5% in the same quarter last year.
The bank has also suspended its financial growth targets for the next year as it undergoes a comprehensive review of its business following the recent settlement over money laundering charges in the U.S. This review may impact various aspects of the business, with findings expected to be shared mid-2025.
TD's restructuring efforts reflect a strategic pivot toward digital banking and artificial intelligence, aiming to modernize its operations and restore investor confidence after the AML scandal. The bank's focus on technology investments and cost-cutting measures indicates a commitment to transforming its business model in response to regulatory challenges and changing market dynamics.
