Metro Bank to Announce More Layoffs and Reduce Working Hours
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Metro Bank plans to trim around 800 jobs by the end of March. The financial institution also plans to review its 24/7 branch model to trim costs amid a multimillion-pound deal announced in November.
According to the troubled lender, it will lay off a fifth of its workforce, which comprises 4,000 employees. It will also evaluate the cost base, which it believes will save up to £50 million annually through investing in automation and trimming working hours on its 76 branches.
Metro Bank Embarks On Cost-Cutting Plan
Last month, the bank revealed plans to trim £30 million in costs after securing a £925 million rescue deal from investors in early October.
This deal prevented a potential breakup or takeover by a rival bank. Nevertheless, the bank’s woes are a surprise as billionaire Jaime Gilinski Bacal, who owns around 45% of Metro Bank, made a fortune buying and selling troubled lenders in Latin America.
Staff account for around 45% of the overall costs at Metro Bank, which emerged as the first new high street lender in the UK for 150 years after entering the industry in 2010. The bank came into the limelight in 2010, focusing on in-person banking.
Daniel Frumkin, the chief executive at the bank, said Metro Bank was committed to stores and high street and transitioned towards a cost-efficient business model. The bank will also remain committed to customer service. The bank will also set up savings of up to £50 million based on an annualized basis.
Metro Bank also said it will simplify operations while investing in processes such as service automation and back-office operations. It will also improve digital channels and work on processes such as deposits.
The bank believes its actions will also reduce the headcount by 20%. It will also not affect the areas of growth. The bank is also planning to continue with plans to grow its branch network across England in a way that bolsters efficiency.
Changes in Operational Hours
The lender also plans to review the seven-day opening and extended store hours across the network. It also plans to discuss the potential effects of reduced hours on customers with the UK financial market regulator, the Financial Conduct Authority.
The bank announced cost-cutting measures will also prompt a one-off charge of between £10 million and £15 million, which is scheduled to be completed by March.
