Metro Bank has announced the termination of its seven-day-a-week service across all branches and plans to reduce its workforce by approximately 1,000 positions due to financial losses. Starting 29 March, all 76 locations will no longer operate on Sundays and Bank Holidays, and over half will also shut their doors on Saturdays.
The bank disclosed a workforce reduction plan aiming to eliminate 22% of its employees by mid-April as a major cost-reduction strategy.
Amid struggles, Metro Bank initiated a review of its operations last fall, targeting annual savings of around £50m. However, by Wednesday, the bank declared an additional cost-saving goal of £30m by the end of 2024, which implies further reductions in jobs.
Daniel Frumkin, the bank’s chief executive, mentioned that while not all savings will result from job cuts, a significant portion will involve reductions in staff-related expenses.
The bank has no plans to shut down any branches. Instead, it aims to expand, with approximately 11 new branches set to open, mostly in the North of England.
This restructuring is part of a broader revamp as the bank reported a less severe underlying loss of £16.9m for 2023 compared to £50.6m the previous year.
Metro Bank, established in the aftermath of the financial crisis, was the first new High Street bank in the UK in over a century. Its founder, Vernon Hill, aimed to offer a different banking experience, including pet-friendly services.
Following a strategic review initiated last November, the bank now plans to adjust its operating hours. Forty-four branches will operate from Monday to Friday, 09:30 to 17:00, while the other 32 will also open on Saturdays from 11:00 to 16:00, changing from the current extended hours throughout the week and weekends.
