Metro Bank unleashes swingeing job cuts as it slashes one fifth of its workforce

Metro Bank is cutting a fifth of its workforce and reviewing whether to stay open seven days a week under plans to slash costs.

The troubled high street lender said the moves were part of plans to ramp up cost savings to £50 million a year, up from £30 million previously guided for.

It said it was in talks with the City regulator, the Financial Conduct Authority (FCA), about the changes planned to its branch opening days and extended store hours.

The cost-cutting comes after MetroBank shareholders on Monday approved a funding package worth £925million to secure its future on Britain’s high streets.

Shareholders gave the green light to a capital fundraise which will see Colombian billionaire Jaime Gilinski Bacal become a majority shareholder in the group with a 53 percent stake.

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Daniel Frumkin, chief executive at Metro Bank, said: “The support shown from our investors through this transaction will allow Metro Bank to accelerate its growth plans, with the new capital allowing us to unlock the potential in the business and deliver sustainable profitable returns as we strive to be the number one community bank.

“We remain committed to stores and the high street but will transition to a more cost-efficient business model while remaining focussed on customer service.

“These actions alongside other initiatives to reduce costs are expected to deliver savings of up to £50million per year on an annualised basis.”

The move will see the challenger bank, which currently employs 4,266 people, axe around 850 jobs, reducing “roles across the organisation, including at senior leadership level”.

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