STRUGGLING Metro Bank is set to axe 800 jobs and review its opening hours in a new cost-cutting drive.
The high street bank is considering cutting its seven-day branch opening hours as it attempts to claw back costs.
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Metro Bank revealed its plans to cut 20% of its 4,000-strong workforce this morning.
The lender has around 2.7million customers and 75 branches across the UK.
It said it was in talks with the City regulator, the Financial Conduct Authority (FCA), about the changes planned to its branch opening days and extended store hours.
It comes after the bank announced a £30million cost-cutting plan last month.
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Metro was handed a £925million injection by a Colombian billionaire after its share price collapsed.
It is also in talks to sell a £3billion mortgage book to Barclays.
Under the new refinancing and recapitalisation plan, cost reduction action will be carried out in early 2024.
It’s hoping to save £50million a year as part of the plan to shore up its balance sheet.
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Metro was founded in 2010 to capitalise on anger over high street bank closures following the financial crisis.
Bosses wanted to focus solely on their branch services by opening seven days a week.
But it came under fire in 2019 when £900million in loans were mis-classified.
Chief executive Daniel Frumkin said: “We remain committed to stores and the high street but will transition to a more cost-efficient business model while remaining focused on customer service.”
As part of the statement, the bank also revealed it is still eyeing up new site openings.
It said: “The company continues to seek sites in the North of England for new stores as previously communicated.
“Metro Bank will also take action to simplify its operations and selectively streamline lending to focus on relationship banking and maximise risk-adjusted returns on regulatory capital.”
It comes after a difficult time for high street banks in the UK.
The latest closures mean 623 branches have been shut so far this year as banks look to move away from the high street.
Data from the UK’s largest cash machine network, LINK, keeps track of any planned branch closures across the UK.
Several major lenders have been affected, such as Barclays, Lloyds and the Bank of Scotland.
Meanwhile, in December Virgin Money is closing two branches, Halifax and NatWest are also shutting one each too.
Most recently, Lloyds Banking Group has revealed that it will be closing 45 branches in the new year.
It comes after hundreds of building society and bank branches closed their doors for good already this year.
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Customers are increasingly turning to online banking to manage their finances while banks and building societies look for ways to cut costs.
Meanwhile, here’s the full list of bank branches closing in December.
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This post first appeared on thesun.co.uk
