TD Bank Lays Off 2,000 Employees… What It Signals for Canada’s Job Market and Economy

TD is laying off 2,000 people, and their reason is a red flag if you’re job hunting in Canada.

Here’s what TD shared in their latest earnings update:

- 2,000 job cuts (2% of staff)

- Restructuring to cut costs and shift toward AI

- Over $11 billion in profit, mostly from selling their stake in Charles Schwab

- $1.3 billion set aside for potential losses on unpaid consumer debt

Here’s what this means for the Canadian economy:

When a major bank sets aside more for missed loan payments, it’s a sign that many Canadians are struggling with debt. That could lead to tighter lending rules, making it harder to get approved for credit, loans, or even a mortgage.

This move is expected to save TD $650 million per year, and comes just 7 months after the bank was fined $3 billion USD in a historic money-laundering case. And there may be more bad news to come this week...

With unemployment rising across Canada, the rest of the Big Six banks are reporting earnings this week.

Plus, Statistics Canada will release Canada’s GDP report on Friday, May 30.

These updates will give us a clearer view of how banks are managing risk, growth, trust, and what job security really looks like in today’s uncertain economy.

Stay tuned.