Santander cuts over 2,000 jobs as restructuring continues

In the United Kingdom, Santander UK has recently announced significant layoffs as part of a strategic transformation aimed at simplifying operations and increasing automation. The bank revealed it had eliminated over 2,000 positions, with the majority of these cuts occurring over recent months as part of its ongoing overhaul. The announcement followed the closure of more than 95 branches in March 2025 and revealed another 750 jobs at risk. This restructuring comes on the backdrop of evolving customer preferences, with a notable shift towards online banking, prompting the lender to adapt to these changing dynamics. The CEO of Santander UK, Mike Regnier, indicated that these job reductions and branch closures are part of a broader plan to streamline the bank's operations through increased technology use. He acknowledged the difficulties posed by the transformation process but emphasized the need for ongoing adjustments in response to market demands. Despite these changes, Regnier expressed a commitment to minimizing compulsory redundancies wherever possible and indicated that there were currently no immediate plans for further branch closures. Complicating matters further, Santander's parent company, Banco Santander, has recently taken steps to acquire UK rival TSB from Spanish competitor Sabadell. This acquisition, valued at approximately £2.65 billion, sparked speculation about potential further job cuts and branch closures as it is projected to yield cost savings of at least £400 million. Regnier stated that the integration process with TSB was still being evaluated, and no decisions have been made regarding branch operations until after the deal is finalized, which is expected in early 2026. In addition to these operational changes, Santander UK is monitoring the outcomes of a crucial Supreme Court ruling concerning the car finance commission scandal, which could significantly affect the bank’s financial standing. Santander has set aside £295 million to account for liabilities related to this issue, indicating potential fluctuations depending on the ruling. The bank's half-year results for 2025 showed a decline in pre-tax profits—down 5% to £764 million—as well as rising provisions reflecting the ongoing transformation costs and uncertainties ahead. Although mortgage loans have stabilized at £167.2 billion, the bank remains optimistic about eventual increases in net mortgage lending as it heads into the latter half of the year.