Close Brothers, a banking group, has announced intentions to cut approximately 600 jobs in the United Kingdom and Ireland. This decision, disclosed alongside the company’s recent financial results, is set to occur over the next 18 months, impacting nearly a quarter of its workforce of 2,600 employees.
The job cuts follow Close Brothers facing additional losses due to the motor finance scandal. The group is preparing for an industry-wide compensation scheme to be revealed by the end of the month, with a provisional allocation of £300 million for driver compensation.
In the first half of this year, Close Brothers reported a loss of £65.5 million, an improvement from the previous year’s £102.2 million loss. Additionally, the banking group plans to lower annual costs by approximately £85 million. This reduction includes £25 million in the current fiscal year ending in September, surpassing the initial target of £20 million, and a further £60 million reduction in the following financial year, a year ahead of schedule.
Cost-saving strategies also involve implementing artificial intelligence (AI) technology and relocating work through outsourcing and offshoring efforts. CEO Mike Morgan emphasized the necessity of these actions to streamline the cost structure, enhance operational flexibility, and maintain high-quality customer service.
Morgan stated, “These strategic measures mark a pivotal advancement in our operational framework, promoting future scalability and cost efficiency for sustained growth and savings in the long term.” He highlighted the group’s resilient performance in the first half of the 2026 financial year, emphasizing solid credit performance and a disciplined approach to costs.
The business has refocused on sectors offering strong and sustainable opportunities, resulting in a marginal reduction in the loan book during the first half. Despite this, several core businesses within the group continue to expand, positioning Close Brothers favorably for future growth as a specialized banking entity.