Close Brothers, a leading banking group, has announced its intention to cut approximately 600 jobs across the United Kingdom and Ireland. The decision was disclosed today alongside the company’s latest financial report and is set to be implemented over the next 18 months, affecting nearly a quarter of its workforce of 2,600 employees.
The job cuts come in the wake of continued losses for Close Brothers due to the motor finance scandal. The company is preparing to unveil an industry-wide compensation scheme by the end of the month and has allocated £300 million for driver compensation.
In the first half of the year, Close Brothers reported a loss of £65.5 million, a decrease from the £102.2 million loss in the previous year. Additionally, the bank unveiled plans to reduce annual costs by approximately £85 million, with a £25 million reduction targeted for the current fiscal year ending in September, surpassing the initial goal of £20 million. Following this, a further £60 million cost reduction is planned for the subsequent financial year, a year ahead of schedule.
To achieve cost savings, the bank will leverage technologies such as artificial intelligence (AI) and will also explore outsourcing and offshoring opportunities. Chief Executive Mike Morgan emphasized the importance of these actions in restructuring the cost base to enhance operational efficiency and customer service.
Morgan stated, “These measures are essential to streamline our operations, enhance agility, and meet the evolving needs of our customers efficiently. While regrettable for the affected employees, these actions are pivotal in positioning our business for future scalability, operational efficiency, and sustained cost savings.”
Looking ahead, Morgan expressed optimism about the bank’s performance, citing resilient trading, solid credit performance, and a robust net interest margin in the first half of the 2026 financial year. Close Brothers has strategically realigned its focus towards markets with strong growth potential, resulting in a marginal reduction in the loan book but continued growth in core business areas. The company remains optimistic about its future growth prospects as a specialized banking group.