op Bank plans 400 layoffs as merger talks continue

Virgin Money UK

26/03/2024 09:41

(Adds details on merger discussions)
       LONDON, March 26 (Reuters) - Britain's Co-operative Bank
said on Tuesday it had started a consultation to cut around 400
jobs, equivalent to 12% of its workforce, as part of broader
plans to simplify its business and reduce costs.
    News of the proposed redundancies follows a multi-year
overhaul of the British bank, which included a 100 million pound
($126.46 million) IT investment programme.
    "The decision has not been made lightly, and the Bank will
continue to work closely with our trade union and to support
impacted colleagues," it said in a statement, describing the
cuts as "essential" for the delivery of its strategic plan.
    Co-op Bank, which lends to consumers and small and
medium-sized businesses, said late last year that it had entered
exclusive discussions with Coventry Building Society with a view
to a possible merger, following a number of non-binding offers
from potential bidders.
        Discussions with Coventry are ongoing, a spokesperson
for Co-Op Bank told Reuters on Tuesday.
  
        Britain's banking sector is undergoing one of the
busiest phases of consolidation in several years, with smaller
lenders seeking to join forces to better compete against the
likes of HSBC  HSBA.L , Barclays  BARC.L , NatWest  NWG.L  and
Lloyds Banking Group  LLOY.L .
  
        Last week, the boards of Nationwide and Virgin Money UK
said they had agreed terms on a 
    2.9 billion pound deal
     that would create Britain's second largest provider of
mortgage and savings products.      
  

($1 = 0.7908 pounds)

 (Reporting By Sinead Cruise, editing by Iain Withers)
 ((sinead.cruise@thomsonreuters.com; 020 7513 5026; Reuters
Messaging: sinead.cruise.thomsonreuters.com@reuters.net))