Metro Bank to axe 20% of staff as part of cost-cutting drive
A £10-15m one-off restructuring charge is expected in 2023, which is lower than previously anticipated, the firm added.
In a stock exchange notice today (30 November), the bank said it had identified potential cost savings of up to £50m per year, which will be implemented during the first quarter of next year.
A £10-15m one-off restructuring charge is expected in 2023, which is lower than previously anticipated, the firm added.
In October, the bank announced a cost reduction plan set to be launched in the fourth quarter of 2023, which was expected to deliver cost savings of about £30m per year.
'New chapter' as Metro Bank secures financing package
While the bank said it remains «committed to stores and the high street», it added it would transition into a more «cost-efficient business model», investing in automation for service and back-office operations and improving digital channels, particularly for deposits.
It is reviewing seven day opening and extended store hours across the store network and is in discussions with the Financial Conduct Authority about the customer implications of any such changes.
Through these measures and working to «selectively streamline lending», the bank will see an expected 20% reduction in headcount, it said.
In October, the bank announced it had secured a financing package with investors to shore up its balance sheet, which resulted in Spaldy Investments becoming the controlling shareholder.
The bank has secured a £325m capital raise, split between £150m of new equity and a £175m MREL issuance, combined with a £600m debt refinancing.
Metro Bank bondholders approve refinancing deal
It announced the passing of shareholder resolutions necessary to approve the move on 27 November, and said
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