TD Waterhouse Group, Inc. is restructuring to improve its ability to face challenges in the volatile securities industry environment and better position the firm for long-term growth.

The firm says will cut its workforce by 9%, or about 600 employees. The restructuring will result in annual pre-tax savings of more than US$40 million beginning in the fourth fiscal quarter, and a pre-tax charge of approximately US$35 million in the third fiscal quarter related to separation, facilities and other costs. In North America, the restructuring consists of closing a call center in Chicago and 17 U.S. branches, as well as reducing certain other U.S. staff.

“In April we announced Project 200, a combination of cost-cutting and revenue-raising initiatives, designed to boost pre-tax income by $200 million,” Steve McDonald, CEO, said. “While we have made significant progress toward achieving the expense reductions outlined in the plan, including reducing our workforce through attrition, investor activity has continued to deteriorate. Project 200 alone will not be sufficient for us to reach our ultimate goal of realigning our expenses and revenues.”

“The restructuring has been made possible by efficiencies that stem from technology solutions. Our technology investments are allowing the firm to do more with fewer resources than before,” McDonald added.