Santander cuts thousands of jobs amid profit decline

In the United Kingdom, Santander UK announced a significant restructuring plan that has resulted in over 2,000 job cuts. This initiative is part of the bank's strategy to streamline operations through simplification and automation. The decision follows a report revealing a 5% decline in pre-tax profits, which totaled £764 million for the first half of 2025. The workforce reductions come after previous job losses initiated in 2024, further developing concerns about the bank's ongoing adjustments. Additionally, Santander UK has been closing branches, with reports indicating that around 95 branches were shut down and hours were reduced at approximately 50 sites. This restructuring plan is aimed at improving efficiency and financial performance in light of declining profits. The ongoing changes reflect a broader trend within the banking industry of consolidating operations and relying more on technology to manage services effectively. As Santander pursues its goal to transform into the best banking option for customers in the UK, Chief Executive Mike Regnier highlighted that the recent agreement to acquire 100% of TSB from Spanish rival Sabadell is expected to speed up this transformation. The bank is expected to complete this acquisition by the first quarter of 2026, which could enhance service offerings and customer experience. However, Santander's restructuring efforts are not without risks. The bank is awaiting a crucial Supreme Court decision regarding the car finance commission scandal, a ruling that may impact financial provisions and necessitate changes in compensation schemes. The provision recorded in 2024 was set at £295 million, but the final financial outcome remains uncertain pending the Supreme Court's judgment. Overall, the combination of job cuts, branch closures, and forthcoming acquisitions represents a critical juncture for Santander UK as it navigates a competitive and challenging financial landscape.