Santander UK is implementing significant cost-cutting measures within its commercial banking division, including a salary freeze, reduced bonuses, and job cuts potentially affecting up to 200 staff members. These changes are part of a broader restructuring aimed at improving efficiency and possibly making the bank more attractive to future buyers.
The restructuring began earlier this month with unexpected changes to bankers’ job titles and team assignments. Many employees have been reassigned to roles with pay brackets up to 25% lower than their previous positions. While the bank cannot legally reduce existing salaries, it has frozen the pay of staff now placed in lower pay bands. Additionally, employees have been informed of upcoming changes to their bonus schemes, which are expected to result in lower payouts.
Employees in the Santander Navigator unit, which was launched three years ago as a “one-stop shop for international trade,” have been put at risk of redundancy. This move comes amid regulatory and cost pressures, including a potential £1.9 billion liability from a car finance commission scandal. Analysts estimate that the scandal could cost the bank up to £1.9 billion in compensation to its former borrowers.
The bank, which serves around 14 million UK customers, previously rejected an £11 billion bid for its UK arm and denies any current plans to sell. However, these recent measures suggest that Santander is exploring ways to streamline operations and adapt to evolving customer expectations while maintaining a presence in the UK market.
