Metro Bank, a UK-based lender, has announced plans to cut hundreds of jobs in an effort to accelerate cost-saving measures. The bank is set to eliminate 300 roles within its business operations, IT, and support divisions as part of its £80 million cost-cutting plan. This move comes after Metro Bank underwent a significant restructuring last year, which included a £925 million rescue deal led by Colombian billionaire Jaime Gilinski Bacal.
The decision to cut jobs follows a previous announcement by the bank to axe 1,000 roles, representing 22 per cent of its workforce, and to discontinue seven-day trading in all its branches. Metro Bank has been facing financial challenges, reporting a loss of nearly £17 million in 2023. In response, the bank increased the size of its cost-cutting plan from £50 million to £80 million earlier this year.
Metro Bank, founded in 2010 as a challenger to traditional High Street banks, has faced a series of setbacks in recent years. The lender, which boasts around 3 million customers, experienced a crisis last autumn due to accounting errors, leadership changes, and regulatory issues. The £925 million rescue package, which included investments from bondholders and debt refinancing, helped stabilize the bank’s operations.
In an effort to return to profitability, Metro Bank has been reshaping its business model towards small and medium-sized business banking. The bank recently sold its residential mortgage book to NatWest and has been focusing on strengthening its balance sheet. Despite the challenges, Metro Bank’s shares have seen a 64.75 per cent increase in 2024, showing signs of recovery from the previous year’s crisis.
The latest round of job cuts will see Metro Bank outsourcing its business operations, IT, and support roles, resulting in additional layoffs. The bank will retain around 3,150 employees after the restructuring. However, the cuts are not expected to impact the bank’s 76 High Street branches or in-store staff.
With a renewed focus on cost-saving measures and restructuring efforts, Metro Bank aims to position itself for future growth and stability in the competitive banking industry. As the bank continues to navigate challenges and adapt to changing market conditions, it remains committed to delivering value to its customers and stakeholders.