Co-op Bank to slash 400 jobs as its seeks to ‘simplify and transform the business’

Job cuts: The Co-operative Bank says it wants to ‘simplify and transform the business’

The Co-operative Bank plans to cut 400 jobs as its seeks to ‘simplify and transform the business’.

It comes as the lender, which employs 3,000 people, remains in talks over a takeover by Coventry Building Society.

A spokesman said the job cuts were not connected with the discussions, which were announced late last year.

The axe will fall across the business including at the lender’s 50 branches but will not have an impact on branch numbers.

The bank said: ‘The decision has not been made lightly, and the bank will continue to work closely with our trade union and to support impacted colleagues.’

Last month, the lender reported a sharp fall in pre-tax profits from to £71.4million from £132.6million the year before. 

Staff costs rose by a fifth. The potential tie-up with Coventry would see the 152-year-old bank return to mutual ownership.

Britain’s mid-sized lenders have been feeling the pinch from tough competition in the mortgage market. Elsewhere, Virgin Money has agreed to a takeover by Nationwide.