Metro Bank has announced workforce reductions in order to strengthen its financial position. The bank intends to reduce its workforce by 20% while also providing some customer benefits.
The bank revealed the job cuts on Thursday, November 30, 2023, as part of its extensive cost-cutting strategy. As part of the restructuring, the bank will also discontinue its seven-day operating hours.
The bank anticipates a one-time restructuring charge of £10 million to £15 million in 2023, which is lower than previously estimated. According to its most recent annual report, the financial institution employs approximately 4,000 people.
Later that day, the bank announced the successful issuance of new bail-in debt, known as MREL, as well as the completion of its debt refinancing, bringing the entire transaction to a close. Metro Bank’s shares were up 3.1% at 1555 GMT following this announcement and the earlier release of the cost-cutting plan. The cost-cutting measures are scheduled to be completed in the first quarter of 2024.
The bank recently received shareholder approval for the equity component of a £925 million refinancing and recapitalisation initiative supported by Colombian billionaire Jaime Gilinski, and the cost-cutting strategy is expected to generate annual savings of approximately £50 million ($63.45 million).
Metro Bank, which was founded in 2010 with the goal of challenging the dominance of major British banks, has faced a number of setbacks, including accounting errors, leadership departures, and delayed regulatory approval for critical capital relief.
In conjunction with the workforce reduction, the bank, known for its extensive, centrally located branch network, announced its intention to devote resources to automating back-office operations and improving digital services.