The layoffs are part of a broad cost-cutting initiative as the lender reorganizes its business and tightens its regulatory controls following severe penalties in the U.S. over money-laundering prevention failures. (The Logic)

Talking point: The effects of October’s U.S. penalties on TD, which include a US$3-billion settlement and an asset cap that limits its growth in the country, continue to reverberate through the lender. TD expects to save $100 million in the 2025 fiscal year and up to $650 million annually by cutting costs through real estate savings, exiting certain business lines and other measures in addition to the staff cuts. TD disclosed the cuts alongside second-quarter earnings that beat analyst expectations for revenue and profit, according to data compiled by S&P Global Market Intelligence. In a note, Jefferies analysts said that despite the disruption to TD’s U.S. retail banking, they were “impressed” with the lender’s growth and “can see the path to much better profitability.”