TSB cuts jobs, branches as Spanish owner Sabadell announces £29m restructuring plan

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Major bank TSB says it will cut jobs and close branches this year.

The lender’s Spanish owner Sabadell announced a £29m restructuring plan on the same day Deutsche Bank said it would cut 3,500 roles.

Banks have been boosted by high borrowing costs, benefiting from a surge in profits and payouts to shareholders. But central banks, including the Bank of England, are expected to cut borrowing costs this year.

This will reduce the amount of interest that lenders collect on mortgages and other loans.

And investment banks like Deutsche have been hit by a lack of trading.

Job cuts: TSB's Spanish owner Sabadell announced a £29m restructuring plan on the same day Deutsche Bank announced it would cut 3,500 jobs.

Job cuts: TSB’s Spanish owner Sabadell announced a £29m restructuring plan on the same day Deutsche Bank announced it would cut 3,500 jobs.

British banks, including Barclays and Lloyds, have recently accelerated their cost cuts.

Last week, Lloyds announced it would cut 1,600 jobs, and in November Barclays said it could cut up to 2,000 to save £1 billion.

Nearly 200 bank branches are expected to close this year and 645 have closed in 2023, as more customers turn to online banking.

Asked whether TSB’s restructuring would involve cutting staff and branches, Sabadell boss Cesar Gonzalez-Bueno said: “It will include both.”

TSB has announced a 30% rise in profit in 2023, from £183.5m to £237.2m, and will pay to Sabadell, which bought it for £1.7bn in 2015, a dividend of £120 million.

The bank has not confirmed how many jobs will be lost or how many branches are expected to close.

A TSB spokesperson said: “We have made it clear that we are focused on reducing costs, but as with any announcement about a change to the way we operate, we always consult our colleagues first. »

At the end of last year, TSB had 5,426 workers, up from 5,482 in 2022, and the number of branches fell from 220 to 211.

Meanwhile, Deutsche announced yesterday that it would cut 3,500 jobs after reporting a 30 percent drop in fourth-quarter profit.

It plans to cut 4 per cent of its total workforce by the end of next year to cut costs by £2.1bn and boost profits.

Deutsche Bank employs around 90,000 people worldwide.

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