Metro Bank in the UK plans to cut 20% of its staff, end seven-day opening hours and streamline operations in a cost-cutting move aimed at saving £50 million annually
Metro Bank is planning to cut costs, and one of the major steps is laying off around 20% of its staff.
This could mean significant job losses for the bank, but they believe it will help save around £50 million per year. With a workforce of 4000 employees, this could affect to 800 employees.
As part of these changes, Metro Bank is also looking at ending some of its customer perks, like the seven-day opening hours that they are known for. The bank has faced challenges in recent years, including accounting errors and leadership changes. To adapt to the current situation, they are focusing on becoming more cost-efficient.
The bank’s CEO, Daniel Frumkin, emphasized that they are committed to their physical branches and customer service. However, there will be a shift to a more streamlined and cost-effective business model. The plan includes investing in automation for back-office tasks and enhancing digital services.
Apart from job cuts, Metro Bank is reconsidering its extended opening hours and reviewing its lending practices. The goal is to focus more on relationship banking to ensure better returns while managing risks effectively.
The decision comes after the bank received approval for a significant refinancing and recapitalization plan backed by a billionaire investor. Despite the changes, Metro Bank’s shares saw a 3.6% increase after the announcement, suggesting some confidence in the proposed plan.
This move by Metro Bank is not unique, as other banks in the UK, like Barclays and Lloyds, are also reviewing their staffing costs. It reflects the challenging times the banking sector is facing and the need for adaptation to ensure sustainability.
