The Co-operative Bank has started a consultation on a “proposed modelling restructure” that could lead to the loss of around 400 roles across the bank.
In an update, The Co-operative Bank said that this was equivalent to 12% of its workforce and it was part of a “series of changes” that were “essential for the delivery of the next phase of the strategic plan”.
The lender said: “The decision has not been made lightly, and the bank will continue to work closely with our trade union and to support impacted colleagues.”
The lender noted that, over the last three years, it had committed to a strategy to “simplify and transform the business with the aim of delivering long-term sustainable growth”.
This includes investing £100m into IT system re-platforming, which the company said was nearing completion.
“As the bank enters the next phase of its transformation plan, it will seek to leverage the benefit of this investment and will be taking steps to ensure we have the right resources and processes in place to deliver our customer and commercial objectives,” the bank said.
The Co-operative Bank has confirmed that the restructuring will not involve any branch closures, which have been a frequent feature of the UK banking market of late – most recently, Lloyds Banking Group, which includes Halifax, announced the closure of over 50 branches over the next nine months. Instead, The Co-operative Bank noted in its 2023 Annual Report that it is revitalising its 50-strong branch network with 10% moved to more prominent sites within their respective towns, with more planned for 2024.
The firm recently migrated around 120,000 mortgage customers from Platform to its own brand in a “major milestone in its mortgage transformation programme”.
The Co-operative Bank also agreed to buy Sainsbury’s Bank’s mortgage portfolio in August and said it would insource mortgage operations from Capita.
The company was also rumoured to be in exclusive merger talks with Coventry Building Society at the tail end of last year.
