EddieJayonCrypto
27 May 25
Toronto Dominion Bank (TD) is cutting costs by winding down a $3 billion US point-of-sale financing portfolio and reducing its workforce by about 2,000 employees, or 2%. The restructuring aims to lower structural costs and invest in future growth, including expanding its proprietary bank card busine...
Toronto Dominion Bank (TD) is undertaking significant cost-cutting measures by winding down its $3 billion US point-of-sale financing portfolio and reducing its workforce by approximately 2,000 employees, or 2%, through a comprehensive restructuring program.TD’s leadership emphasizes that these moves aim to lower structural costs and create capacity for future investments, particularly in expanding its proprietary bank card services. The bank plans to achieve the workforce reduction mainly via attrition and redeployment of talent toward areas with accelerated growth opportunities.Raymond Chun, TD Bank's group president and CEO, noted that exiting the point-of-sale financing business—which consists of bespoke arrangements with various retailers—will enhance the bank’s US retail return on equity and enable a sharper focus on scalable, profitable core operations.Alongside workforce cuts, TD is investing in automating and reengineering its operational processes, targeting increased efficiency and operational excellence across the organization.These strategic efforts follow a difficult year for TD’s US unit, which faced steep legal penalties totaling $3.1 billion for failing to comply with the Bank Secrecy Act. The violations involved inadequate monitoring of large cash transactions that facilitated illicit activities, prompting substantial settlements with the Department of Justice and the Financial Crimes Enforcement Network (FinCEN).As TD restructures, the bank looks to innovate and strengthen its market position, balancing cost discipline with strategic growth initiatives to build a more resilient financial institution for the future.