Metro Bank has recently unveiled its strategy to downsize its workforce by 20%, equating to approximately 800 job cuts, as part of a comprehensive plan aimed at rescuing the bank from financial strain.
The challenger bank, facing substantial challenges, had previously announced a cost-cutting initiative amounting to £30 million. However, to fortify its financial standing, Metro Bank has now set its sights on achieving annual savings of £50 million while undertaking measures to reinforce its balance sheet.
With a current staff strength of approximately 4,000 employees, the bank’s proposed restructuring would involve a significant reduction in its workforce.
In a bid to strengthen its financial position further, Metro Bank has been engaged in discussions to offload a £3 billion mortgage book. Notably, exclusive talks with Barclays were disclosed earlier this week, a move that could potentially enhance its capital reserves.
The bank has outlined its anticipation of finalizing the cost reduction measures by early 2024. As a part of this restructuring, Metro Bank foresees a one-time expense of up to £15 million, expected to be recorded in the ongoing fiscal year.
