Santander axes 2,000 jobs and warns more cuts are possible
Mike Regnier, chief executive of Santander in the UK, said the year-on-year drop in its workforce comes as part of a 'simplification and automation' drive as it ramps up the use of technology and as customers switch to online banking.
He told the PA news agency there 'might well be' more job cuts on the way by the end of 2025 as the bank continues its restructure.
But he said it was too early to say what impact the £2.65 billion deal recently announced by its Spanish owner to buy UK rival TSB would have on jobs and branches.
His comments came as the group reported a 5% fall in pre-tax profits to £764 million for the first six months of 2025, with provisions for liabilities and charges up 74% to £249 million, driven by 'higher transformation-related charges'.
The group announced last October it was axing more than 1,400 jobs across the UK bank in 2024 and has since warned around another 750 jobs were at risk after revealing in March that it was closing another 95 branches and reducing hours at 50 sites.
Mr Regnier told PA: 'Transformation is not a one-off thing.
'Whilst we have done a lot over the past year, our transformation journey will need to continue.'
He said the group would try to avoid compulsory redundancies where possible and added there were no immediate plans for further branch closures.
There has been speculation over whether Banco Santander's deal to buy TSB from Spanish rival Sabadell would lead to further job cuts and branch closures, with the tie-up expected to lead to at least £400 million in cost savings.
Mr Regnier said the group had 'made no decisions around branches because we are still waiting to complete the deal'.
But he said the takeover 'accelerates our transformation, allowing us to enhance our customer proposition and invest more in innovative products and our digital offering'.
The takeover is expected to complete in the first quarter of 2026.
Santander is also awaiting the outcome of a crucial Supreme Court judgment on the car finance commission scandal on Friday, which is set to have a bearing on the Financial Conduct Authority's plans for a compensation scheme.
The bank put by a £295 million provision in 2024 for the affair, which it said 'continues to reflect the Santander UK group's best estimate'.
But it cautioned the outcome could have to change following the judgment.
The group said: 'Santander UK will consider the outcome of the Supreme Court judgment and any subsequent steps the Financial Conduct Authority proposes to take once known, which could lead to a change in the value of the provision.
'As such, the ultimate financial impact could be materially higher or lower than the amount provided.'
Its half-year results showed mortgage loans were flat at £167.2 billion in the first half, though the bank expects a 'gradual return' to net mortgage lending in 2025, adding its pipeline was good heading into the second half.
The wider Banco Santander group reported record net income of 6.8 billion euros (£5.9 billion) for the first half, but revealed a 467 million euro (£403 million) charge for its Brazilian arm due to the country's economic outlook.
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