Co-operative Bank plans to slash 400 jobs - cost-cutting drive would cut one-tenth of workforce
Co-operative Bank is planning to reduce its workforce in a cost-cutting drive
PA
The Co-operative Bank has announced plans to cut 400 jobs in a major cost-cutting drive.
The measures would see the bank shed around one in 10 of its workforce.
Co-operative Bank today said it was embarking on a consultation and restructure which will lead to a net reduction of 12 per cent of its roles across the organisation.
The bank said: “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.
“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 per cent) 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.”
Approximately 400 jobs at Co-operative Bank could be cut
PA
Last month, the business reported that its pre-tax profit nearly halved from £132.6million in 2022 to £71.4million the following year.
They said the drop was down to one-off costs, including almost £29million which had been set aside to cover redress to past mortgage customers.
Employee costs also increased by a fifth during 2023.
The planned redundancies will be made across the business, including head office, operations and branch roles.
However, the bank said no branch closures are planned as a result of the measures.
Around 200 to 250 people are expected to leave the business.
People in other affected roles would be able to apply for different jobs within the company.
The consultation period will end in early May, with those affected then serving their notice period.
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The bank said it had been trying to "simplify and transform" over the past three years, which it hopes will bring "long-term sustainable growth".
The firm has invested £100million into a new IT system which will be completed soon.
The bank added: “As the bank enters the next phase of its transformation plan it will seek to leverage the benefit of this investment and will be taking steps to ensure we have the right resource and processes in place to deliver our customer and commercial objectives,.
“Accordingly, the bank has undertaken a review to identify opportunities to simplify processes, reduce our cost base and make efficiency improvements.”