TSB to axe 164 branches and 900 jobs
TSB Banking Group
339.00p
16:34 27/07/15
British bank TSB announced on Wednesday that it will close 164 branches and cut around 900 jobs as it struggles with the economic effects of the Covid-19 pandemic.
Banco de Sabadell
€1.69
18:15 26/04/24
Banks
4,061.31
16:59 26/04/24
IBEX 35
11,154.60
18:44 26/04/24
TSB, which is part of Spain's Sabadell, said the cuts were part of its three-year strategy to reduce costs to stay competitive.
The bank currently has 475 offices in the UK and after the closures it will hold on to 290 branches.
It is unclear which branches will close and which employees will be affected but the bank said that the closures will be in branches that are closer to other offices.
TSB also said that each branch would have around 17,000 clients, which is below the UK average.
The lender also said that the layoffs will mostly come voluntarily and it will be implementing a training program to help those leaving the company to find another job.
Wednesday's decision was motivated by the change in the way that clients interact with the bank as many choose online banking and avoid going out due to the pandemic.
Chief executive officer of TSB, Debbie Crosbie, admitted that closing offices "is never an easy decision".
"We are reshaping our business to transform the customer experience and prepare for the future. This means having the right balance between street branches and our digital platforms, allowing us to deliver the best experience for our personal and business customers throughout. UK. We remain committed to our branch network and will maintain one of the largest in the UK, "said Crosbie.