TSB Bank to cut 250 more jobs and close 36 branches in cost-cutting drive
TSB Bank is planning to cut around 250 jobs and close three dozen branches, joining other mid-sized high street lenders that are looking to reduce costs and shift to digital services.
The lender told employees on Wednesday it would cut roles in its fraud operations and central operations, as well as its branch network due to the closure of 36 physical locations. TSB will have 175 branches after these closures.
The 250 new layoffs come on top of 300 job cuts announced in February as part of a wider restructuring plan. That month, TSB said it had set aside £29m for a cost-saving programme aiming to simplify the business and reduce its cost-to-income ratio.
A TSB spokesperson said on Wednesday: “To meet changing customer needs and for TSB to remain competitive, we are making changes to simplify the way we operate.
“These decisions are never taken lightly. Our priority is to consult with impacted colleagues to ensure they’re fully supported, maximising redeployment opportunities where we can.”
The news comes as several mid-sized British lenders implement job cuts and branch closures to reduce cost pressures and adapt to the prevailing shift to digital banking.
Metro Bank has shed roughly 1,000 jobs since being rescued from potential collapse last year.
The Co-operative Bank in March unveiled plans to reduce headcount by around 400, while Virgin Money said in February that it had laid off some 150 staff during its first quarter and expected more job cuts during 2024.
TSB said it would close the branches because not enough customers were using them. The number of in-branch transactions at TSB has fallen 43 per cent over the last four years, with roughly 96 per cent of all its transactions now taking place outside of a branch.
Andy Case, regional officer at employee union Unite, said TSB’s latest move was a “grave mistake”. “These workers perform essential work in the fraud departments and across the branch network,” he said.
“Through extensive negotiations Unite has been able to substantially reduce the number of jobs at risk. However, that isn’t sufficient, the union is pressing TSB to urgently reconsider its damaging bank branch closures plan.”
TSB is owned by Spain’s fourth-biggest lender Banco Sabadell, which earlier this week rejected a a €12bn (£10.3bn) merger proposal from larger domestic rival BBVA that would have raised questions over TSB’s future ownership.