Co-operative Bank will axe 350 jobs in middle management and head office and will close 18 branches as Covid jobs bloodbath continues
The Co-operative Bank is to axe around 350 jobs from up and down the country and close 18 branches as it becomes the latest business to fall victim to Britain's coronavirus jobs bloodbath.
More than 187,000 people across a range of industries face redundancy, or have already been laid off, in recent months as the pandemic puts a huge dent in the national economy.
The bank is to slash roles in middle management and head office as it said today it has not been immune to the effects of the crisis, as low interest rates hit the income of all lenders.
The Co-operative Bank has said it plans to cut around 350 jobs as it closes 18 branches and reduces middle management and head office rolesMore customers are also choosing to bank online, and making fewer transactions in branches, chief executive Andrew Bester said.
Bosses promised to try to redeploy staff where possible, and will consult with them and the unions.
Rob MacGregor at Unite said that the union is 'deeply disappointed' by the decision to cut staff and close branches.
'Job losses are always unwelcome, however, given the repeated restructuring exercises that this workforce has been through over the past 10 years the news today will be particularly painful,' he said.
'During these extremely testing economic times, Unite wants all employers to work with the trade union to avoid job losses and protect the livelihoods of our members.
'Unite will continue to press The Co-operative Bank to put strategies in place to secure as many jobs as possible and avoid compulsory redundancies.'
The 18 branches will be closed by December 1 this year.
Co-operative Bank said it had chosen the sites after analysing their footfall over the last 12 months.
It will write to affected customers to let them know what alternatives are available.
Mr Bester said: 'Our people have shown great dedication and commitment to our customers over the past few months, so we are very sorry to announce this news today.
'Unfortunately, we're not immune to the impact of recent events, with the historically low base rate affecting the income of all banks and a period of prolonged economic uncertainty ahead, which means it's important we reduce costs and have the right-sized operating model in place for the future.
'At the same time, we are responding to the continuing shift of more and more customers choosing to bank online, with lower levels of transactions in branches, a trend which has been increasing for some time, across the banking sector and more broadly.'
The closed branches include banks in Cambridge, the City of London, Rotherham and York.
Many of the UK's biggest high street lenders have been at the centre of ensuring that businesses are supported through the Covid-19 crisis.
However, they have also been forced to write down many of the loans that they have given to businesses which may be struggling during the crisis.
Mr Bester added: 'The bank is in a resilient position given the significant progress we've made in recent years, and our focus is on maintaining this as we continue to support our customers through the crisis. We will do all we can to support colleagues through the process with fairness and respect.'
Among the more recent casualties of the Covid crisis is Marks & Spencer, which announced last week it will axe 7,000 jobs as part of a further shake-up of its stores and management.
It brought the total number of cuts and roles at risk in Britain's battered retail sector to more than 41,000, while industry chiefs this week warned more than 90,000 jobs in the travel sector have been lost or at risk because of the pandemic.
Marks & Spencer announced last week that it plans to cut around 7,000 jobs over the next three months
It has been predicted some 6.5 million jobs in total will go in the UK because of the coronavirus disaster.
It has led to calls for a targeted support scheme for the sector amid concerns the Government's action will not be enough to save jobs or specifically help or retrain those in retail who have lost their roles.
The Government's furlough scheme for workers comes to an end in October and while it has launched the back to work bonus, offering firms £1,000 for every furloughed staff member a business retains, there are fears there will still be thousands more retail jobs axed.
Chancellor Rishi Sunak unveiled his Plan for Jobs in the summer statement alongside a 15% cut in VAT to add to the 100% business rates relief already available for eligible businesses.
Around 14,000 jobs could also be on the brink at Debenhams, with plans to liquidate the business being drawn up in case other options for saving the company – such as selling it – fall through.
If the ailing department store chain collapses – and all 14,000 jobs are lost – it would be the single biggest cull of the coronavirus crisis.
It would bring the total number of potential UK job losses to more than 180,000 since the pandemic began – adding to misery hitting firms from Virgin Atlantic to NatWest, British Gas-owner Centrica and luxury car maker Aston Martin.
British Airways has so far announced the largest cull, signalling that it may have to cut as many as 12,000.
The likes of Laura Ashley, Cath Kidston and Oasis are among the other big-name brands that have collapsed this year.
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