Staff cuts could soon be coming at TD Bank as the lender warned it expects to incur more organizational restructuring costs next quarter.
In its earnings release Thursday, TD provided more details on a corporate restructuring program it announced in May. The bank said its profit for the three months ended Oct. 31 fell to $3.3 billion from the same period last year, following a restructuring charge.
Also Thursday, CIBC and BMO reported financial results for the quarter. All three banks’ earnings beat analysts’ expectations, despite economic uncertainty around U.S. tariffs.
Earlier this year, TD executives disclosed that the bank would be slashing two per cent of its workforce to cut costs and refocus spending under new CEO Raymond Chun, who became the head of the bank in February.
Now, TD says the restructuring program will involve an approximate three per cent staff reduction, according to Thursday’s release.
In a statement, a spokesperson for the bank said that “additional opportunities to streamline our organizational structure” were identified.
“The bank continued to undertake certain measures in the fourth quarter of 2025 to reduce its cost base and achieve greater efficiency,” the earnings release stated.
“Next quarter, the bank expects to incur additional restructuring charges of approximately $125 million pre-tax, and to conclude the restructuring program with total restructuring charges of approximately $825 million pre-tax,” it continued.
So far in the 2025 fiscal year, TD’s restructuring charges amounted to $686 million pre-tax, including employee-severance and “personnel-related costs.”
In October, The Globe and Mail reported that TD had laid off workers across several divisions.
“As we enter fiscal 2026, TD is well-positioned to navigate changing economic dynamics and support the aspirations and needs of our clients,” Chun said in a statement.
TD raised its quarterly dividend to $1.08 per share from $1.05 per share.
Also on Thursday, BMO reported a fourth-quarter profit of $2.3 billion, which is slightly lower than in Q4 2024.
The bank announced lower-than-expected provisions for credit losses — funds banks are required to set aside to cover loan defaults — of $755 million.
In a call with analysts Thursday, BMO executives said the provisions last quarter reflected an improvement in economic scenarios.
“While trade uncertainty persists, pending the review of the USMCA agreement,” said BMO CEO Darryl White, “I’m encouraged that initiatives to invest in Canada and diversify trade relationships to strengthen the Canadian economy over the medium term are beginning to move forward.”
CIBC’s net income rose 16 per cent to $2.2 billion from the same time last year.
The bank’s provisions for credit losses totaled $605 million and were higher than analysts had forecasted.
CIBC’s CEO Harry Culham also expressed support for the federal government’s national building initiatives in key sectors of Canada’s economy.
“We have deep client relationships in these sectors and will be there to support Canada’s growth, regardless of how the environment evolves,” he said in a call with analysts Thursday.
