Employment Law

TD Bank cutting thousands of jobs as part of restructuring

A photo of four Canadian bills on a table. (Photo: PiggyBank / Unsplash)

Toronto-Dominion Bank (TD) is the latest of the big Canadian banks to scale back its staffing levels.

According to Bloomberg, the lender’s Q4 2023 earnings release included a restructuring charge related to a planned three per cent cut to its workforce — potentially affecting more than 3,000 employees.

“[TD] undertook certain measures in the fourth quarter of 2023 to reduce its cost base and achieve greater efficiency,” the earnings release reads.

“In connection with these measures, [TD] incurred $363 million of restructuring charges, which primarily relate to employee severance and other personnel-related costs, real estate optimization, and asset impairments.”

After tax, the restructuring charges are in line with other Canadian banks that have announced job cuts, including National Bank, Royal Bank of Canada (RBC), and Bank of Montreal (BMO).

TD added that it expects to incur similar restructuring charges in the first half of 2024.

Major layoffs continue

The reduction at TD comes amid a flurry of layoffs in 2023.

Big names, including BroadcomAmazon, AbCellera, Unity, Canadian Tire, PwC, Maersk, Nokia, and Ubisoft, have pulled out the axe as they continue to navigate challenging economic conditions.

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Termination agreements for TD Bank employees

In Canada, non-unionized employees at TD are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

Severance pay for federally regulated employees
Rights to severance for banking sector staff
Severance entitlements during mass layoffs

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.

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