1,000 jobs to go at Co-operative Financial Services in bid to slash operating costs by £100m

Banking and insurance group Co-operative Financial Services (CFS) will axe 1,000 jobs in an attempt to reduce its operating costs.

CFS whose business includes Co-operative Bank  and Internet bank Smile, said it wanted to reduce its operating costs by £100m before June 2008.

The group has 90 retail banks and 11 corporate banking branches across the UK and serves six million customers. The job cut represents about 10% its 10,000 workforce.

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David Anderson, chief executive at CFS, said: “Decisions taken which lead to a reduction in colleague numbers are not taken lightly and consultation is underway with all the relevant trade unions.

“Full support will be offered to all colleagues affected by these changes. CFS will aim to achieve some of these changes through voluntary means however the scale of the reorganisation will mean that compulsory redundancies are inevitable,” he added.