The Co-operative Bank plans to cut 400 jobs, around 12% of its workforce, in an attempt to slash costs amid a drop in profits.
Redundancies are set to affect employees in head office, operational and branch roles, and are part of a wider review that aims to “identify opportunities to simplify processes, reduce our cost base and make efficiency improvements”, it said.
Its annual results statement published last month revealed its pre-tax profit fell to £71.4m in 2023 from £132.6m in 2022.
Employees were informed about the job cuts this morning (26 March) and a consultation period is set to run until 7 May.
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It expects around 200 to 250 staff to leave the firm, with others eligible to apply for different roles.
Those set for redundancy are expected to have left the business by the end of August.
The Co-operative Bank said in a statement: “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.”
Coventry Building Society is considering a takeover of the Co-operative Bank, which was bailed out by hedge fund owners in 2017.
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Several other banks have recently announced job losses, including Metro Bank, Lloyds Banking Group, and Barclays.
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