Struggling UK lender Metro Bank is planning to reduce store opening hours and cut 20% of its staff in a bid to slash costs by £50 million per year.
Implementation of the cost reduction plan is expected to complete during the first quarter of 2024 and a £10-15 million one-off restructuring charge is expected in 2023, which is lower than previously anticipated.
The firm - which was an avid proponent of the branch banking model at its launch in 2010 - says it will transition to a more cost-efficient business model, investing in automation for service and back-office operations and improving digital channels, particularly for deposits.
At the same time, the company is reviewing seven day opening and extended store hours across the branch network and is in discussions with the FCA about the customer implications of any such changes. Plans to open sites in the North of England will continue as previously communicated.
Metro Bank will also take action to simplify its operations and selectively streamline lending to focus on relationship banking, resulting in a 20% headcount reduction.
All told, more than 850 Metro staff will lose their jobs. The bank currently employs 4,266 people and said that it plans to reduce "roles across the organisation, including at senior leadership level".
This week, shareholders voted to back a £925m rescue deal aimed at securing the bank's future after an accounting scandal rocked the loss-making firm to its core.