From Yahoo Finance: 2025-05-22 06:14:00

TD Bank announced a 2% workforce layoff to cut costs and invest in digital and AI under new CEO, Ray Chun. The restructuring will save up to C$650 million annually, including exiting the U.S. point of sale financing business. Shares rose 3.7% in Toronto.

The layoff of 2,000 employees is part of a restructuring program to save costs. TD expects to incur pre-tax restructuring charges of C$600-700 million over several quarters. CEO Chun aims to automate operations and drive efficiencies across the bank.

TD’s restructuring program, post anti-money laundering settlement, received positive feedback from analysts. The bank reported better than expected Q2 earnings, driven by strong performance in wholesale banking. The unit reported record revenue of C$2.13 billion, up 10% from a year earlier.

Despite setting aside C$1.34 billion in provisions for future souring loans, TD reported adjusted earnings of C$1.97 per share, beating analysts’ estimates. CFO Kelvin Tran mentioned building reserves due to the uncertain environment. The results offer insights into the impact of tariffs chaos on the Canadian economy.

Read more: Canada’s TD Bank to lay off 2% of workforce in restructuring