Santander UK has cut more than 2,000 jobs as part of a major cost-cutting plan and says more changes are on the way.
The high street bank, which is owned by Spanish banking giant Santander, said the cuts are part of efforts to make the business simpler and more automated.
It expects these changes to continue saving money into 2025. The bank reported a five per cent drop in profits, with pre-tax earnings falling to £764 million in the first half of 2025.
Last year, Santander announced over 1,400 job cuts across its UK branches. Then in March this year, it warned that another 750 jobs were at risk, as it planned to shut 95 more branches and reduce hours at 50 other locations.
Mike Regnier, chief executive of Santander in the UK, said the year-on-year drop in its workforce comes as part of a "simplification and automation" drive as it ramps up the use of technology and as customers switch to online banking.
He told the PA news agency there "might well be" more job cuts on the way by the end of 2025 as the bank continues its restructure
The bank reported a five per cent drop in profits
|PA
It comes just as Santander’s Spanish parent company announced a £2.65 billion deal to buy UK bank TSB, in a move that could reshape the UK banking sector.
The group is also waiting for a key Supreme Court ruling this Friday, which could impact how much banks like Santander must pay out to customers affected by the car finance commission scandal.
The ruling will influence whether a full compensation scheme goes ahead, as proposed by the Financial Conduct Authority (FCA).
The bank has already set aside £295 million in 2024 to cover potential costs linked to the car finance commission scandal. It said this amount "continues to reflect the Santander UK group’s best estimate".
Santander launches £180 free cash offer | GETTYHowever, the bank warned that this figure could change depending on the outcome of the Supreme Court ruling due this week.
In a statement, Santander said: "Santander UK will consider the outcome of the Supreme Court judgment and any subsequent steps the Financial Conduct Authority proposes to take once known, which could lead to a change in the value of the provision."
It added: "As such, the ultimate financial impact could be materially higher or lower than the amount provided."
Santander said mortgage lending stayed flat at £167.2 billion during the first half of the year but expects to see a gradual recovery in 2025. The bank added that its mortgage pipeline looked strong heading into the second half.
Chief executive Mike Regnier said the wider group’s recent deal to buy TSB from Spanish bank Sabadell would help speed up Santander’s transformation in the UK.
He said: "In the first six months of 2025 we continued to build momentum in our strategy to become the best bank for customers in the UK by investing in technology and service, and improving our processes and efficiency.
The £2.65 billion takeover is expected to complete in early 2026
| GETTY"Banco Santander’s recent agreement to acquire 100% of TSB from Sabadell accelerates our transformation, allowing us to enhance our customer proposition and invest more in innovative products and our digital offering."
He added: "This is an excellent deal for customers, combining two strong and complementary banks."
The £2.65 billion takeover is expected to complete in early 2026.