Co-operative Bank to axe 400 jobs as part of major cost-cutting plans

26 March 2024 , 08:43

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A general view of a Co-operative Bank branch in Derby (Image: PA Archive/PA Images)

Co-operative Bank has said it plans to cut around 400 jobs, the equivalent of more than one in 10 of its workforce.

The move is part of huge cost-cutting measures and will result in a net reduction of 12% of roles across the business. Co-op Bank has around 2.6 million customers. It comes after Co-op Bank saw its yearly profit nearly halve, with its pre-tax profit falling to £71.4 million for 2023, down from the £132.6 million it made in 2022.

In its last financial update, released last month, the lender said it had set aside nearly £29million to cover costs of a redress scheme to compensate mortgage customers, following upheld complaints by the Financial Ombudsman Service (FOS). The FOS said Co-op Bank applied "unfair" interest rate increases to its standard variable rate (SVR) deals on four occasions between 2009 and 2013.

Co-op Bank said it had decided to compensate customers who might have been affected, regardless of whether or not they had complained. The lender also said its profits were lower after it spent about £15million on improving how it manages savings and loans, and around £8million on advisory costs relating to a strategic review of the business.

A spokesperson 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%) 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."

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