TD Waterhouse Group Inc. is reporting a loss of $21.8 million for the third quarter ended July 31.

TD Waterhouse’s loss includes an after-tax restructuring charge of $22.4 million. The firm also announced cash earnings of 3¢ per share on revenues of $257 million in the face of further deterioration of market conditions and a decline in investor activity in the firm’s third fiscal quarter. New account openings in the quarter were 105,500 at an average cost per account of $154.

“As uncertain market conditions kept investors on the sidelines, we saw a further decrease in investment activity among customers this quarter. While our overall results reflect these declines, our customer asset level was virtually unchanged, which positions us to benefit from a rebound in investor sentiment and increase in investment activity,” said CEO Steve McDonald.

“We have made notable progress on Project 200’s cost-cutting measures, including surpassing our target of reducing our workforce to 7,000 associates through attrition this quarter,” McDonald said. “However, it had become clear that the current market environment required further action and last month we announced a strategic restructuring that provides near-term relief from challenges in our operating environment and better positions the firm for long term growth.”

Under the recently-announced restructuring plan, TD Waterhouse will reduce its global workforce by approximately 600 positions or 9%. Specifically, the restructuring consists of: moving to a two-call center strategy in the U.S. by closing the firm’s third call center in Chicago; closing 17 U.S. branches to focus physical locations in areas the firm has identified as growth opportunities; and reducing U.S. corporate staff by 10% and eliminating selected U.S. technology positions.

In the U.K., the firm announced plans to close a call center located in Bradford. The restructuring is expected to result in annual pre-tax savings of more than $40 million beginning next fiscal quarter.

“By restructuring our business to realize operational efficiencies achieved through technology solutions, we reconcile two important needs: balancing expenses and revenues in the face of continuing declines in investor activity, while leaving the firm with the resources critical for future growth when market conditions become more favorable,” McDonald said. “Despite the difficult operating environment facing our industry, we remain convinced of the strength of our business model and expect that the corporate restructuring we announced, the provisions of Project 200, and the enhancements we continue to make to our global offering, will keep the firm on the path toward long-term success and will foster shareholder value.”