Co-op Bank to axe 18 branches

THE Co-operative Bank plans to cut around 350 jobs around the country as it closes 18 branches and slashes middle management and head office roles.

The bank said it had “not been immune” to the effects of recent months, as low interest rates hit the income of all lenders.

More customers are banking online and making fewer transactions in branches, chief executive Andrew Bester said. Bosses promised to try to rede- ploy staff where possible, and will consult with them and the unions.

Rob MacGregor at Unite said that the union was “deeply disappointed” by the decision to cut staff and close branches.

The 18 branches will be closed by December 1 this year.

Co-operative Bank said it had chosen the sites after analysing their footfall over the past 12 months. It will write to affected customers to let them know what alternatives are available. Mr 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 closed branches include banks in Cambridge, the City of London, Rotherham and York.

Many of the UK’s biggest high street lenders have been at the centre of ensuring that businesses are supported through the Covid-19 crisis.

However, they have also been forced to write down many of the loans that they have given to businesses which may be struggling during the crisis.

‘It’s important to reduce costs and have the right-sized operating model in place’