TD Bank has announced the launch of a restructuring initiative, aimed at enhancing operational efficiency and reducing costs.

The restructuring is expected to yield annual savings between C$550m ($396.7m) and C$650m ($468.8m) pre-tax, which will include a decrease of around 2% in employee headcount.

The layoff affects approximately 2,000 employees, reported Reuters.

This programme, which commenced in the second quarter of this year, has already resulted in pre-tax restructuring charges amounting to C$163m.

Furthermore, the bank anticipates that total pre-tax restructuring costs will reach between C$600m and C$700m over the coming quarters.

The charges are primarily associated with real estate optimisation, employee severance, personnel-related expenses, asset impairment, and the rationalisation of certain business operations, including the winding down of specific activities.

TD Bank Group President and CEO Raymond Chun said: “We are operating in a fluid macroeconomic environment.

“As we navigate this period of uncertainty, TD is very well-capitalised, prepared for a broad range of economic scenarios, and remains focused on the needs and goals of our clients.”

The restructuring was revealed along TD Bank’s financial results announcement for the second quarter ending 30 April.

The bank’s reported earnings were C$11.1bn for the second quarter, a 334% surge from a year ago, due to the sale of its remaining stake in The Charles Schwab. Adjusted earnings dipped 4% year-on-year to C$3.6bn.