TD Bank said Thursday it would cut two per cent of its workforce, or nearly 2,000 employees, as it launched a restructuring.
The lender is the first of Canada’s six biggest banks to release its second-quarter results that offer a glimpse into how the economy is doing amid a trade war with the United States.
Its profits dipped but results beat expectations, while the bank increased the amount of funds set aside for possible loan losses — amid uncertainty created by U.S. tariffs and Canadian counter levies imposed since March.
The financial results are the first to include tariff impacts.
Chief executive Raymond Chun, who took the bank’s helm in February following a money-laundering scandal, said the results were strong but he also acknowledged headwinds.
“We are operating in a fluid macroeconomic environment,” Chun said in a statement.
“As we navigate this period of uncertainty, TD is very well-capitalized, prepared for a broad range of economic scenarios, and remains focused on the needs and goals of our clients,” he said.
TD Bank last year pleaded guilty to multiple felonies in the United States including violating the Bank Secrecy Act and conspiracy to commit money laundering.
The 10th largest bank in the United States agreed to pay more than $3 billion in penalties for failing to adequately monitor money laundering by drug cartels.
U.S. President Donald Trump has slapped general tariffs of 25 per cent on Canada as well as sector-specific levies on autos, steel and aluminum, but he has suspended some of them pending negotiations.
Canada has also paused some counter tariffs for six months.
The nation of 41 million people sends three-quarters of its exports to the United States, and the latest jobs report shows tariffs imposed by Trump are already damaging the Canadian economy.
