LONDON: Metro Bank, which has struggled in its quest to shake up Britain’s established banking sector, said Thursday that it planned to axe about 850 staff.
Launched in 2010 following the global financial crisis, Metro’s offering has focussed on customer service, in particular opening physical branches seven days a week, in a bid to snatch customers away from the likes of HSBC, Barclays and Lloyds.
But as customers increasingly switch to online banking, traditional retail lenders have closed thousands of premises.
Lloyds Banking Group on Thursday announced plans to shut another 45 branches, comprising its Lloyds, Halifax and Bank of Scotland brands.
At the same time, Metro said it “is reviewing seven day opening and extended store hours across the store network”.
In a bid to slash costs, Metro added that it planned a “20-percent headcount reduction”.
Chief executive Daniel Frumkin said that while Metro remained “committed to stores”, the bank “will transition to a more cost-efficient business model while remaining focussed on customer service”. The steps being taken were expected to save the group up to £50 million ($63 million) per year, he added.
Shareholders on Monday approved a funding package worth £925 million for Metro.
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