Yahoo Finance Troubled high street bank to axe hundreds of jobs in £50m cost-cutting plan
Metro Bank has announced a review of its seven-day-a-week opening hours and plans to axe around 850 jobs in a drastic cost-cutting plan.
The troubled lender, which was recently forced to strike a £925m rescue deal, said it would review the opening times of its 76 branches, including both days and hours. It is in talks with the banking regulator, the Financial Conduct Authority, about the impact on customers.
The review suggests Metro is preparing to call time on long opening hours at its bank branches.
Metro aimed to upend banking conventions when it launched in 2010 with colourful, open-plan branches that opened on Sundays from 8am until 6pm.
Late night opening hours until 8pm during the week also set it apart from the big high street incumbents.
However, the increasing use of digital banking and apps has seen customer demand for bank branches fall over the past decade.
Metro is also under pressure to cut costs after being forced into an emergency refinancing in October, amid fears about its future.
Shares in the bank plummeted after the banking watchdog told it that capital rules around its mortgages would not be relaxed and credit agency Fitch subsequently warned the bank was at risk of a credit rating downgrade.
Colombian billionaire Jaime Gilinski ultimately led a deal to inject new capital into Metro and refinance some of its debt. The deal was completed on Thursday.
Metro unveiled a £30m cost-cutting plan in October but has now raised its target to £50m.
While branch opening hours are being targeted as part of its cost-cutting drive, plans to open new branches in the north of England remain unchanged and Mr Frumkin has pledged to protect the lender’s existing sites.
Chief Daniel Frumkin said: “We remain committed to stores and the high street but will transition to a more cost-efficient business model while remaining focussed on customer service.”
The review of Metro’s bank opening hours came as Lloyds Banking Group announced it would close a further 45 branches.
The company is shutting 22 Halifax branches, 19 Lloyds branches and four Bank of Scotland sites across the county.
As well as the branch review, Metro plans to slash its workforce by 20pc and automate some of its banking services and back office operations. The target suggests around 850 jobs are at risk.
Metro spent £197m on staff pay in 2022, accounts show.
Cost cuts will help to “simplify its operations”, the bank said. It will also “selectively streamline lending to focus on relationship banking.”
Metro announced a board overhaul alongside its cost-cutting plans. Three board members, Anne Grim, Ian Henderson and Monique Melis, will depart at the end of the year, leaving seven directors on Metro’s board.
