United Kingdom: Metro Bank, a retail and commercial bank operating in the UK, is planning to cut 20 percent of its workforce to save it from collapse.
The bank said that the measures are part of a strategy to save around $63 million a year. It comes following the struggling challenger lender’s announcement of a $37 million cost-cutting plan last month.
Ever since its launch, Metro Bank has made an effort to set itself apart from more established lenders by remaining open for longer. However, it also disclosed that it would reduce its hours of operation.
It has about 4,000 employees, so under the plans, it anticipates losing about 800 of them. The bank noted that it plans to reduce “roles across the organisation, including at senior leadership level.”
Metro, which earlier this week received shareholder approval for a $1.1 billion refinancing and recapitalization plan, is also in talks to sell a $3.8 billion mortgage book.
Metro Bank remarked that, “The company is reviewing seven day opening and extended store hours across the store network and is in discussions with the Financial Conduct Authority about the customer implications of any such changes.”
Established in 2010, following the financial crisis, Metro Bank was the first bank to open in the United Kingdom in over a century.
It has faced difficulties in recent years because of an accounting scandal. The bank was having trouble turning a profit, and in October 2023, there were rumours that it was looking to raise capital and refinance a portion of its debt.
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