Close Brothers, a banking group, has announced its intention to cut approximately 600 jobs across the United Kingdom and Ireland. These job reductions, disclosed in the company’s latest financial report, will be implemented over the next 18 months, affecting nearly a quarter of its workforce of 2,600 employees.
The decision to downsize comes amid Close Brothers facing additional losses due to the motor finance scandal. The company has set aside £300 million for compensating affected drivers, with details of a comprehensive compensation scheme expected by the end of the month.
In its recent financial results, Close Brothers reported a loss of £65.5 million for the first half of the year, an improvement from the £102.2 million loss recorded in the previous year. The banking group also unveiled plans to reduce annual costs by around £85 million, with an immediate £25 million reduction targeted for the current fiscal year, followed by a further £60 million cut in the upcoming financial year, a year earlier than initially planned.
Additionally, Close Brothers is implementing cost-saving initiatives such as incorporating artificial intelligence (AI) technology and transferring work to external and offshore locations. CEO Mike Morgan emphasized the necessity of these actions to lower the company’s cost structure, enhance operational efficiency, and better serve customers.
Morgan stated, “While the impact on affected colleagues is regrettable, these actions are necessary to structurally lower our cost base, while increasing our agility and ability to serve our customers with the speed, flexibility, and reliability that they have come to expect. These actions are crucial for our future scalability, operational efficiency, and achieving long-term savings.”
Looking ahead, Morgan highlighted the company’s resilient trading performance in the first half of the fiscal year 2026, underpinned by prudent cost management, strong credit quality, and a robust net interest margin. Close Brothers has strategically realigned its focus on markets with strong growth potential, resulting in a marginal reduction in the loan book in the first half, while key business segments continued to expand. The company is well-positioned for future growth as a specialized banking entity.
