Metro Bank Holdings Plc said it expects to chop around 800 jobs and review its policy for keeping some branches open all week as it increases the scope of its cost reduction plan.
The UK lender said it has now identified potential cost savings of up to £50 million a year, up from £30 million ($38.1 million) previously, according to a statement Thursday. It will review “seven day opening and extended store hours across the store network, and also pull back on some lending.”
The changes are expected to cut headcount by 20% and will be implemented during the first quarter of 2024. The company said it expects to record a one-off restructuring charge of £10 to £15 million in 2023.
Metro Bank will have a greater focus on “higher yielding corporate and commercial lending,” the statement said. The more extensive cost-cutting program comes days after shareholders voted in favor of a capital raise that’s part of a £925 million rescue deal agreed in October that will see Colombian billionaire Jaime Gilinski take a controlling stake.
Metro Bank, which had about 4,000 staff at the end of last year, launched in 2010 as the UK’s first new high-street bank in over a century. Known for its glitzy network of branches, it’s lost money for the past four years, and its shares have struggled ever since it published incorrect information on its risk-weighted assets in 2018.
