Co-operative Bank to close 18 branches, cut 350 jobs

The Co-operative Bank said on Tuesday that it plans to close 18 branches and cut around 350 roles, pointing to low interest rates, economic uncertainty and a shift to online banking

Aside from the affected branches, the job cuts will focus on middle management positions and head office roles and the bank said it will look to redeploy colleagues into alternative posts where possible.

Chief executive Andrew Bester said: "Our people have shown great dedication and commitment to our customers over the past few months, so we are very sorry to announce this news today. Unfortunately, we’re not immune to the impact of recent events, with the historically low base rate affecting the income of all banks and a period of prolonged economic uncertainty ahead, which means it’s important we reduce costs and have the right-sized operating model in place for the future.

"At the same time, we are responding to the continuing shift of more and more customers choosing to bank online, with lower levels of transactions in branches, a trend which has been increasing for some time, across the banking sector and more broadly."

The Unite union said it was "deeply disappointed" by the news .

National officer Rob MacGregor said: "Job losses are always unwelcome, however given the repeated restructuring exercises that this workforce has been through over the past 10 years the news today will be particularly painful.

"During these extremely testing economic times Unite wants all employers to work with the trade union to avoid job losses and protect the livelihoods of our members.

"Unite will continue to press the Co-operative Bank to put strategies in place to secure as many jobs as possible and avoid compulsory redundancies."

Susannah Streeter, senior investment and markets commentator at Hargreaves Lansdown, said: "Falling central bank interest rates, in response to the coronavirus crisis, have squeezed banking profit margins, and put the loss-making Cooperative Bank under even more pressure.

"The dramatic switch to online banking amongst all demographic groups during lockdown has driven down demand for in-branch services. Already banks were dealing with a shift in the way customers do business, now that trend has accelerated, so it’s not surprising that the Co-operative Bank has announced this latest restructure as part of the ongoing turnaround plan to return the business to profit."