TD cut jobs and a $3B portfolio to shrink under its US money-laundering asset cap

TD, Canada's second-largest bank, entered 2025 reeling from US money-laundering failures that cost it more than $3 billion in penalties and imposed a $434 billion asset cap on its US retail operations. New CEO Raymond Chun, at the helm since February, was about two-thirds through a comprehensive strategic review launched the previous year to bring the bank back inside the cap.

In May 2025 the bank announced the next tranche: a restructuring begun in its fiscal second quarter that cuts about 2% of its roughly 100,000-person workforce, with C$600-700 million ($432-505 million) in restructuring charges over several quarters, expected to generate C$100 million ($72 million) in savings for fiscal 2025. CFO Kelvin Tran said cuts would come through attrition where possible, plus real-estate optimization, asset write-offs and business exits.

The same logic reached the balance sheet. TD is winding down its $3 billion US point-of-sale financing portfolio serving third-party retailers — a business US CEO Leo Salom said 'does not scale quite as well' because of bespoke arrangements with each retailer — and has already sold its entire Charles Schwab stake and a $9 billion residential mortgage portfolio, shrinking US retail assets by about 10%. Chun said the restructuring frees funds to accelerate digital and AI investments and scale relationship banking.

C$100M ($72M) savings expected in fiscal 2025; a $3B POS portfolio wound down; the Schwab stake and a $9B mortgage book sold to shrink US retail assets ~10%.

The asset cap makes total US assets the binding constraint, so low-return assets have to go regardless of their standalone health.

Bespoke point-of-sale deals consume investment that proprietary and co-brand cards return at higher rates.

Cutting through attrition first protects the AML remediation work, which needs experienced staff to finish.

An asset cap turns size itself into the enemy: sell what doesn't scale, cut what doesn't differentiate, and reinvest the savings in what regulators still demand you fix.

By March 2025 Chun had said the bank was about two-thirds through the strategic review; asked in May whether more businesses would be wound down, he said executives were 'looking at all of our options'.