Metro Bank announces major change to branches and axes 1,000 jobs
Lloyds announces 1600 job losses across bank branches
Metro Bank has announced it is cutting 1,000 jobs and warned that its workforce could be slashed further as part of a wider overhaul which will affect the operation of its bank branches.
The bank also confirmed that its branches will no longer be open seven days a week in a blow to its customers as it looks to find ways to save money.
Previously, the high street lender confirmed plans to reduce annual costs by an estimated £50million which will see it axe 22 per cent of its existing 4,266 members of staff by mid-April.
Notably, this is slightly higher than the originally expected 20 per cent cut which was forecast by Metro Bank.
Furthermore, the bank said it is exploring making another £30million worth of cuts by the end of the year.
Daniel Frumkin, the chief executive of Metro Bank, cited that such a move would “inevitably” lead to more jobs being cut.
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The bank is set to axe 1,000 staff roles with more jobs to be lost later in the year
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As well as this, Mr Frumkin shared that all 76 stores will no longer be open on Sundays and on bank holidays from March 29.
Furthermore, Metro Bank’s opening hours are being reduced following a review which was launched last autumn,
According to the banking group, 44 of its bank branches will be open five days a week, from Monday to Friday, 9:30am to 5pm.
The other 32 locations will be open six days a week, from 9.30am to 5pm on Monday to Friday, and 11am to 4pm on Saturdays.
Currently, Metro Bank’s branches operate from 8:30am until 6pm from Monday to Saturday, with sites being open from 11am to 5pon on Sundays.
Despite this overhaul, the banking group has confirmed it will not close any of its branches for the foreseeable future.
Instead, Metro Bank is planning to open at least another 11 bank branches in the UK, mainly across the North of England.
This is in stark contrast to the majority of high street lenders which are contributing to the trend of bank branch closures sweeping the country.
Lloyds, Barclays and NatWest are among the banks preparing to cut more branches later in 2024, with Nationwide Building Society pledging to keep locations open until 2026.
Last November, Metro Bank axed 850 jobs in a bid to ramp up its costs savings to up to £50million a year.
As part of this latest overhaul, Mr Frumkin said not all extra cost savings would come from additional job losses but noted “inevitably some will have to come from colleague costs”.
Details of the overhaul came as it reported a £16.9million underlying loss for 2023, narrowed from losses of £50.6 million in 2022.
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Last year, Metro Bank cut around 850 jobs and launched a review into whether to stay open seven days a week
PAThe banking group revealed that it returned to profit for the first time since 2018 on a statutory basis with pre-tax profits of £30.5million.
Its latest plan to scrap seven-days-a-week physical banking services runs contrary to its previous aim of focusing on high street banking.
In 2010, Metro Bank was founded a challenger to the major banks with longer opening hours at branches being part of the strategy.
Last year, the banking group outlined its cost-cutting plan after shareholders approved a £925million funding package to protect its future.
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