Santander UK has shed more than 2,000 jobs as part of an ongoing cost-cutting drive, coinciding with a dip in its half-year profits.
The high street lender, whose Spanish parent recently agreed to acquire UK rival TSB for £2.65 billion, attributed the workforce reduction to its “simplification and automation” strategy.
This initiative is projected to continue driving cost efficiencies into 2025.
The job cuts come as Santander reported a 5 per cent decline in pre-tax profits, reaching £764 million for the first six months of 2025.
This latest reduction follows an announcement last October to cut more than 1,400 roles across its UK operations in 2024.
The bank further warned in March that approximately 750 additional jobs were at risk, alongside plans to close 95 branches and reduce hours at around 50 sites.
Santander is also awaiting a critical Supreme Court ruling on Friday concerning the car finance commission scandal, a decision expected to influence the Financial Conduct Authority’s proposed compensation scheme.
The bank has already put by a £295 million provision in 2024 for the affair, which it said “continues to reflect the Santander UK group’s best estimate”.
But it cautioned the outcome could have to change following the judgment.
The group said: “Santander UK will consider the outcome of the Supreme Court judgment and any subsequent steps the Financial Conduct Authority proposes to take once known, which could lead to a change in the value of the provision.
“As such, the ultimate financial impact could be materially higher or lower than the amount provided.”
Its half-year results showed mortgage loans were flat at £167.2 billion in the first half, but said it continues to expect a “gradual return” to net mortgage lending in 2025, adding its pipeline was good heading into the second half.
Mike Regnier, chief executive of Santander, said Banco Santander’s recent deal to buy TSB from Spanish rival Sabadell would speed up the bank’s transformation.
He said: “In the first six months of 2025 we continued to build momentum in our strategy to become the best bank for customers in the UK by investing in technology and service, and improving our processes and efficiency.
“Banco Santander’s recent agreement to acquire 100 per cent of TSB from Sabadell accelerates our transformation, allowing us to enhance our customer proposition and invest more in innovative products and our digital offering.
“This is an excellent deal for customers, combining two strong and complementary banks.”
The takeover is expected to complete in the first quarter of 2026.
