Co-op Bank to slash more than one in 10 jobs
The Co-operative Bank is to cut the size of its workforce by an eighth in a scramble to reduce costs.
The bank said that it was embarking on a consultation and restructure which will lead to a net reduction of 12pc of its roles across the organisation, meaning around 400 people will be laid off.
The Co-operative launched a strategic review in November and revealed at the end of last year that it is in talks with Coventry Building Society over a merger which would create a super-mutual with £90bn of assets.
It 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 (12pc) 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.”
The Co-operative’s latest job losses come after Coventry, which is advised by KPMG, cautioned in December that a deal to merge the two lenders would only be struck if it was in members’ interests.
Co-op Bank is Britain’s 13th largest mortgage lender with £20bn of mortgages. It is separate from the supermarket and funeral chain Co-op, which is owned by the Co-operative Group. The bank was once part of the same group but the owner sold its 20pc stake in the bank in 2017.
In 2013, Co-op Bank was rescued by a group of hedge funds after a black hole on its balance sheet nearly prompted the bank to topple.
A disastrous merger with the Britannia Building Society, followed by a botched purchase of around 600 branches from Lloyds, had left its balance sheet exposed.
Former chairman Paul Flowers, a Methodist minister, was forced to apologise for his oversight of the bank after he was dragged into a tabloid sex and drugs scandal and failed to impress MPs when questioned in Parliament.
Co-op Bank has 50 branches and 3,5000 employees. Its headquarters are in Manchester.
