TD Bank Group, a Canadian multinational bank, announced plans to reduce its workforce by three per cent as part of a restructuring effort. The news communicated to the employees on Thursday, 30 November, 2023, will result in the elimination of 3,000 roles at the bank.
The decision comes after a quarterly profit report that failed to meet analysts’ expectations.
The move is anticipated to help the bank in optimising its operations and achieving efficiencies. Additionally, it’s aimed at creating room for investment in future growth.
TD reported restructuring charges of C$363 million in the fourth quarter, primarily linked to employee severance and other personnel-related expenses. The bank anticipates incurring additional charges of a similar scale in the first half of 2024.
The US branch of the bank exhibited a vulnerability, experiencing a 19 per cent decline in earnings due to decreased deposits and loan margins. Net interest income, representing the variance between what banks earn on loans and pay on deposits, saw a decrease of almost 1.8 per cent, totalling C$7.49 billion.
TD Bank is following in the footsteps of Royal Bank of Canada, which reduced approximately 1,800 positions, and Bank of Nova Scotia, which eliminated 2,700 jobs. Additionally, the smaller peer CIBC announced on Thursday that it had reduced its workforce by five per cent.
TD Bank Group, commonly known as TD, is a prominent Canadian multinational banking and financial services corporation. Headquartered in Toronto, it provides a wide range of financial products and services, including retail banking, commercial banking, and wealth management, serving millions of customers worldwide.