Close Brothers, a banking group, has announced its intention to eliminate approximately 600 jobs in the United Kingdom and Ireland. The decision, disclosed alongside the lender’s latest financial report, will be implemented over the next 18 months, affecting nearly a quarter of its 2,600-strong workforce. These job cuts come in the wake of ongoing losses due to the motor finance scandal, with an industry-wide compensation scheme anticipated to be revealed by the end of the month. Close Brothers has earmarked £300 million for driver compensation.
The banking group reported a loss of £65.5 million in the first half of the year, a decrease from the previous year’s £102.2 million loss. Additionally, Close Brothers has outlined plans to trim annual costs by around £85 million. This cost-cutting strategy includes a £25 million reduction by the end of the current fiscal year, an increase from the previous target of £20 million, followed by a further £60 million reduction in the subsequent financial year, a year earlier than initially planned. To achieve these savings, Close Brothers will introduce artificial intelligence (AI) and explore outsourcing and offshoring options.
CEO Mike Morgan stated that while the impact on affected employees is unfortunate, these measures are essential to permanently lower the company’s cost base and enhance its ability to efficiently serve customers. He emphasized the importance of these actions in evolving the operating model to support scalability, drive operational efficiency, and unlock future savings. Morgan also highlighted the firm’s resilient trading performance in the first half of the 2026 financial year, underpinned by disciplined cost management, strong credit performance, and a robust net interest margin.
Looking ahead, Close Brothers aims to focus on markets with robust and sustainable prospects, positioning itself for future growth as a specialized banking entity. For the latest money-saving tips and offers, readers can subscribe to the Mirror Money newsletter.