Close Brothers, a banking group, has announced a plan to cut approximately 600 jobs in the UK and Ireland. This decision, revealed alongside the lender’s recent financial results, will be implemented over the next 18 months. The reduction in workforce accounts for nearly 25% of Close Brothers’ current 2,600 employees.
The job cuts come in the wake of ongoing losses attributed to the motor finance scandal. Close Brothers is setting aside £300 million for potential driver compensations, with details of a broader industry compensation scheme expected to be disclosed by the end of the month.
In its latest financial report, Close Brothers disclosed a loss of £65.5 million for the first half of the year, a decrease from the £102.2 million loss reported in the previous year. The banking group also unveiled plans to trim annual expenses by approximately £85 million, with £25 million earmarked for the current fiscal year ending in September, an increase from the previous £20 million target. An additional £60 million reduction in costs is scheduled for the following fiscal year, a year earlier than initially planned.
To achieve cost savings, Close Brothers is adopting various strategies, including the expanded use of artificial intelligence (AI) and the outsourcing and offshoring of certain functions. Chief Executive Mike Morgan emphasized the necessity of these actions to enhance cost efficiency, operational flexibility, and customer service standards.
Morgan stated, “While it is unfortunate for the impacted employees, these measures are crucial for structurally reducing our cost base and enhancing our operational agility. Our goal is to better serve customers with the speed, flexibility, and reliability they expect from us.”
He further elaborated, “During the first half of the 2026 financial year, Close Brothers demonstrated a resilient trading performance, driven by cost control measures, strong credit quality, and a robust net interest margin. By focusing on markets with sustainable growth prospects, we have slightly decreased our loan book in the first half while expanding our core businesses. This positions us well for future growth as a specialized banking entity.”