Co-operative Bank to axe 400 jobs in fresh blow to the high street
26 March 2024, 11:18
The Co-operative Bank is set to axe 400 jobs in a fresh blow to the high street.
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The cut amounts to around one in 10 of the bank's workforce, with redundancies being made across head office, operations and branch roles. No branch closures are planned as a result.
The bank said it would be embarking on a consultation and restructure which will lead to a net reduction of 12% of its roles across the organisation.
Around 200 to 250 people are expected to leave the business, with people in other affected roles being able to apply for different jobs within the company.
The business said it has been trying to "simplify and transform" over the last three years, in a bid to bring "long-term sustainable growth".
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"Today, we have announced a series of changes across the bank which are essential for the delivery of the next phase of the strategic plan," the Co-operative Bank said.
"These include the commencement of a consultation on a proposed operating model restructure which is expected to result in a net reduction of approximately 400 roles (12%) across the bank.
"The decision has not been made lightly, and the bank will continue to work closely with our trade union and to support impacted colleagues."
It comes just a month after the company announced its pre-tax profit had nearly halved from £132.6 million in 2022 to £71.4 million the following year.
It said one-off costs, including nearly £29 million which was set aside to cover redress to past mortgage customers, were the reason for the huge drop.
Staff costs also increased by a fifth during 2023.
Late last year the bank revealed it was in "exclusive discussions" with Coventry Building Society over a potential merger of the two firms.
