TD Bank plans to reduce its global workforce by about 3%.
Canada's second-largest bank confirmed the layoffs in an email to the Daily Hive on Thursday.
A TD Bank spokesperson said: "We are working on a restructuring plan to streamline processes, improve efficiency and create space for future growth. ”
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"We expect a 3% reduction in headcount globally, and we will achieve this through natural departures and reallocation of talent to open positions where possible to minimise the impact on our workforce. ”
The company has approximately 95,000 employees worldwide, with a layoff rate of 3%, equivalent to about 3,000 employees.
TD Bank did not say how many Canadian jobs would be affected, nor did it confirm a specific timing of the layoffs.
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The announcement came at the same time as its fourth-quarter 2023 financial results, but its profit fell short of analysts' expectations.
The bank said it had accrued C$363 million in restructuring charges, "primarily related to employee layoffs and other personnel-related expenses." ”
In its financial results report, TD has released the following transparent information.
Fourth-quarter financial highlights compared to the fourth quarter of last year:
Reported earnings per diluted share were C$1.49, compared to C$3.62 in the year-ago quarter.
Adjusted earnings per diluted share were C$1.83, compared to C$2.18 in the year-ago quarter.
Reported net income was C$2,886 million, compared to C$6,671 million in the year-ago quarter.
Adjusted net income was C$3,505 million, compared to C$4,065 million in the year-ago quarter.
Full-year financial highlights compared to last year:
Reported earnings per diluted share were C$5.60, compared to C$9.47 in the year-ago quarter.
Adjusted earnings per diluted share were C$7.99, compared to C$8.36 in the year-ago quarter.
Reported net profit was C$10,782 million, compared to C$17,429 million in the year-ago quarter.
Adjusted net income was C$15,143 million, compared to C$15,425 million in the year-ago quarter.
Financial results for the fourth quarter ended October 31, 2023. Reported earnings were C$2.9 billion, down 57% from the fourth quarter of last year, and adjusted earnings were C$3.5 billion, down 14%.
Bharat Masrani, President and Chief Executive Officer, TD Bank Group, said, "TD delivered strong revenue growth in the quarter, reflecting positive underlying business momentum and the strength of our diversified business model. "In a complex operating environment, we are constantly adapting, investing in new capabilities and taking important steps to improve efficiency and drive growth across the bank. ”
Restructuring charges of a similar magnitude are expected to be recorded again in the first half of 2024.
TD Bank is not the only financial institution to announce layoffs.
Scotiabank today announced significant layoffs worldwide, with approximately 3% of employees expected to be laid off.
According to the bank's Q4 2023 earnings results, the layoffs are due to factors such as automation, changing customer day-to-day banking preferences, and continued streamlining processes.
Scotiabank noted that the decision will be accompanied by restructuring charges and redundancy charges of approximately C$247 million (approximately C$341 million before taxes).
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The bank also said it would cover C$63 million (C$87 million before tax) in consolidation and contract costs, as well as C$280 million (C$355 million before tax) impairment charges related to its investment in Bank of Xi'an Co., Ltd.
"We expect the savings from these items to be realised in FY2024 and expect full benefits in FY2025," Scotiabank said. ”
As of July 2023, Scotiabank reports more than 90,000 employees worldwide.
The news comes after Royal Bank of Canada announced in August that it planned to cut about 2% of its full-time workforce in the fourth quarter.