Metro Bank Holdings has revealed its decision to cut a fifth of its staff in order to expand its cost-reduction plan. The British lender aims to save up to £50 million per year in costs, with the plan expected to be completed by the first quarter of 2024. In addition, the implementation of this plan will incur a one-off restructuring charge of between £10 million and £15 million in 2023, a lower figure than previously anticipated.
As part of the cost-reduction initiative, Metro Bank Holdings will review its operating hours and seven-day opening policies across its network of stores and high street locations. The company plans to invest in automation for both service and back-office operations, as well as enhancing its digital channels. In 2022, the bank employed 4,040 people.
While committing to maintaining a presence on the high street, Metro Bank Holdings aims to transition to a more cost-efficient business model, all while remaining dedicated to providing excellent customer service. Chief Executive Daniel Frumkin emphasized this commitment.
Founded in 2010, Metro Bank Holdings earned the distinction of being the first retail bank to open in the UK in over a century. Unlike other lenders that primarily focus on online banking, Metro Bank Holdings successfully established physical branches throughout the country.
In addition to staff reduction, Metro Bank Holdings plans to simplify its operations and selectively streamline lending. This strategic move aims to prioritize relationship banking and maximize risk-adjusted returns on regulatory capital.
The bank had previously announced a £30 million cost-saving plan that is set to be launched in the fourth quarter of 2023.
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