Close Brothers, a banking group, has announced its intention to cut approximately 600 jobs across the UK and Ireland. The decision was disclosed today alongside the company’s latest financial results and is scheduled to be implemented over the next 18 months. This workforce reduction represents nearly a quarter of the total 2,600 employees.
The job cuts come in the wake of Close Brothers reporting additional losses due to the motor finance scandal. The company is anticipating the details of a compensation scheme for the industry by the end of the month and has allocated £300 million for driver compensation.
In financial terms, Close Brothers revealed a loss of £65.5 million in the first half of the year, a decrease from the £102.2 million loss in the previous year. The banking group also unveiled plans to trim annual costs by around £85 million. This cost-saving initiative includes a £25 million reduction in the current fiscal year, increased from the initial target of £20 million, followed by an additional £60 million cut in the following financial year, a year ahead of schedule.
Moreover, cost-cutting strategies involve the implementation of artificial intelligence (AI) and the outsourcing and offshoring of certain operations. Mike Morgan, the Chief Executive, expressed regret over the impact on affected employees but emphasized the necessity of these actions to enhance operational efficiency and better serve customers.
Morgan stated, “These actions are crucial to structurally reduce our cost base and enhance our operational capabilities. Our goal is to provide customers with the speed, flexibility, and reliability they expect. This transformation in our operating model supports future scalability, promoting operational efficiency and enabling long-term savings.”
Looking ahead, Morgan added, “Our performance in the first half of the 2026 financial year demonstrates resilience, driven by cost management, strong credit performance, and a robust net interest margin. By focusing on lucrative and sustainable markets, we have strategically positioned the business for growth. Despite a marginal reduction in the loan book, our core businesses continued to expand, indicating our readiness for future growth as a specialized banking group.”