Close Brothers, a banking group, has announced its intention to cut approximately 600 jobs in the United Kingdom and Ireland. The decision was disclosed today alongside the company’s latest financial report and is set to occur over the next 18 months, affecting nearly a quarter of its workforce of 2,600 employees.
The staff reductions come in light of ongoing losses related to the motor finance scandal, with Close Brothers earmarking £300 million for driver compensation. The group reported a loss of £65.5 million in the first half of the year, an improvement from the £102.2 million loss in the previous year.
Additionally, Close Brothers unveiled plans to trim annual expenses by roughly £85 million. This cost-saving initiative includes a £25 million reduction by the end of the current fiscal year, increasing from the initial target of £20 million, and a further £60 million cut in the following financial year, a year earlier than planned. The company is also implementing measures such as leveraging artificial intelligence technology and outsourcing work.
CEO Mike Morgan emphasized the necessity of these actions to enhance operational efficiency and better serve customers. He highlighted the company’s focus on profitability and growth, stating, “We have positioned the business to capitalize on strong and sustainable market opportunities, leading us to a promising future as a specialized banking institution.”