Toronto-Dominion Bank’s decision to exit its U.S. lending business will affect real estate, the bank and multiple reports state.

TD shares surged as much as 4.4%—its biggest intra-day jump since January—after the bank beat second-quarter earnings estimates and unveiled a restructuring plan aimed at curbing costs, including job cuts and real estate reductions.

As part of the restructuring effort launched in the second quarter, TD will eliminate roughly 2% of its global workforce, or around 2,000 positions.

The plan will cost up to $700 million on a pre-tax basis over several quarters and is expected to yield about $100 million in savings this fiscal year, with up to $650 million in annual savings thereafter.

A bank spokesperson confirmed to Bloomberg that some of the job cuts have already been communicated internally. TD has already absorbed $163 million in restructuring charges related to “real estate optimization, employee severance and other personnel-related costs, and asset impairment and other rationalization, including certain business wind-downs,” the bank said.

The changes come as TD continues to wind down parts of its U.S. operations following last year’s $3.1-billion settlement with U.S. authorities over anti-money-laundering failures. The bank is now restricted from expanding its American retail business and is refocusing capital spending on Canadian banking and capital markets.

“There are no quick fixes to the challenges our country is confronting,” said CEO Raymond Chun during an earnings call, referencing macroeconomic uncertainty and U.S. tariff policies. “This is going to take time and considerable effort.”

Chun, who became CEO in February, is leading a strategic review, with revised financial targets set to be unveiled at an investor day on September 29.

Despite the restructuring and broader economic concerns, TD reported adjusted earnings of $1.97 per share in the second quarter—beating the $1.78 average analyst estimate, Bloomberg reported. The bank also set aside $1.34 billion for credit losses, lower than the forecasted $1.41 billion, according to Bloomberg, and provisioned $395 million for performing loans that could face future risk.

TD Bank Group plans to open a new Layer 6 office in New York City later this year, expanding its artificial-intelligence research and development capabilities in the U.S.

“This quarter we saw strong execution across our businesses,” C. The Canadian personal and commercial banking segment delivered growth on both sides of the balance sheet,” Chun said on the earnings call.

Pictured: Building that holds a TD office in Manhattan.

Photo:  Mariusz Lopusiewicz / Shutterstock.com