UK lender Metro Bank is set to eliminate approximately 300 positions as part of a strategic initiative to achieve £80 million in annual savings. The job reductions will primarily affect the bank’s business operations, IT, and support functions, as reported by the Daily Mail.
This announcement follows a significant workforce reduction of more than 850 employees, representing a 20% decrease in headcount, which was disclosed late last year. That previous restructuring was a response to a £925 million rescue package necessitated by an accounting scandal that severely impacted the firm.
Having initially championed the traditional branch banking model since its inception in 2010, Metro Bank is now shifting towards a more streamlined and cost-effective business approach. This transformation includes plans to shorten store operating hours, enhance automation in both customer service and back-office functions, and bolster digital channels, particularly for deposit services.
To facilitate this transition, Metro Bank has partnered with Infosys, leveraging the vendor’s Topaz generative AI technologies to create a “simpler, more consistent customer experience.”
Daniel Frumkin, CEO of Metro Bank, stated, “At the conclusion of this transformation, we will look like a markedly different organization, yet the core principles of Metro Bank—delivering exceptional service with a customer-centric focus—will remain intact.”
The bank anticipates realizing £80 million in annualized cost savings this year through a variety of initiatives, all while striving to achieve a mid-to-high teen Return on Tangible Equity by 2027.