Close Brothers, a banking group, has announced its intention to eliminate approximately 600 positions in the United Kingdom and Ireland. These job cuts, disclosed alongside the lender’s latest financial results, are scheduled to occur over the next 18 months and will impact nearly a quarter of its 2,600 employees.
The decision to reduce the workforce comes in the wake of Close Brothers facing increased losses due to the motor finance scandal. The company has set aside £300 million for potential driver compensation as part of an industry-wide scheme expected to be outlined by the end of the month.
In their financial report, Close Brothers revealed a loss of £65.5 million for the first half of the year, an improvement from the £102.2 million loss reported in the previous year. Additionally, the banking group unveiled plans to cut annual costs by approximately £85 million. This cost-saving initiative includes a £25 million reduction in the current year ending in September, surpassing the initial target of £20 million, followed by a further £60 million reduction in the next financial year, a year ahead of schedule.
To achieve these cost reductions, Close Brothers will be implementing measures such as leveraging artificial intelligence (AI) and exploring outsourcing and offshoring opportunities. Chief executive Mike Morgan emphasized the importance of these actions in streamlining the cost structure of the company while enhancing efficiency and customer service.
Morgan stated, “The actions taken are regrettable for the impacted employees but are essential for lowering our cost base structurally and enhancing our operational flexibility to better serve our customers. These steps mark a significant advancement in our operational model evolution, enabling us to drive future scalability, operational efficiency, and long-term cost savings.”
Looking ahead, Morgan expressed optimism about the company’s performance, highlighting a resilient trading outlook in the first half of the 2026 financial year. Close Brothers has strategically refocused on markets with strong growth potential and sustainable opportunities. Despite a slight reduction in the loan book, core businesses within the group have shown growth, positioning Close Brothers for future expansion as a specialized banking entity.