Metro Bank is considering making 20% of its workforce redundant and reducing opening hours as part of a strategy to save around £50m a year.
Since its launch in 2010 the bank made longer opening hours a key part of its offer to customers, but it may now end its seven days a week policy.
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Metro Bank said: “The company is reviewing seven-day opening and extended store hours across the store network and is in discussions with the Financial Conduct Authority about the customer implications of any such changes.”
Under the strategy, more than 850 Metro staff will lose their jobs. The bank employs nearly 4,300 people and has said it plans to reduce “roles across the organisation, including at senior leadership level”.
This week, shareholders voted to back a £925m rescue deal aimed at securing the bank’s future.
Metro Bank set out to challenge the main High Street banks in the wake of the 2008-11 financial crisis and it said that part of its ethos was to help customers avoid “the lunchtime sprint” by being open between 8am and 8pm for the entire week.
Last month the bank said it wanted to make annual cuts of £30m a year but it has now raised that to £50m. This will be achieved by cutting back-office jobs and increasing the level of automation throughout the business, it said.
It said it “remains committed to stores and the High Street” and was still looking for sites for branches in the north of England.
The news of potential redundancies comes in the wake of news that Barclays is working on plans to cut up to 2,000 jobs in compliance, HR and legal roles, while Lloyds Banking Group is undertaking a skills review which could potentially affect 2,500 jobs.
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