Close Brothers, a banking group, has announced intentions to cut approximately 600 jobs in the United Kingdom and Ireland. The decision was disclosed as part of the company’s latest financial report and is set to occur within the next 18 months. This move accounts for nearly 25% of its current workforce of 2,600 employees.
The job cuts come in the wake of ongoing losses related to the motor finance scandal faced by Close Brothers. The company is anticipating details of a compensation scheme for the industry to be unveiled by the end of the month. To address this issue, Close Brothers has allocated £300 million for driver compensation.
The company reported a loss of £65.5 million in the first half of the year, a decrease from the £102.2 million loss recorded in the previous year. Additionally, Close Brothers aims to trim annual costs by around £85 million. This cost-cutting initiative includes a £25 million reduction in the current fiscal year ending in September, surpassing the previous target of £20 million, followed by a further £60 million reduction in the subsequent financial year, a year ahead of schedule.
In an effort to streamline operations and enhance efficiency, Close Brothers is implementing cost-saving measures such as the integration of artificial intelligence (AI) and the outsourcing and offshoring of certain functions. Chief Executive Mike Morgan emphasized the necessity of these actions to reduce the company’s cost base structurally while improving its ability to cater to customers promptly and reliably.
Morgan stated, “These actions mark a significant advancement in our operational model evolution to facilitate future scalability, enhancing our capacity to achieve operational efficiency and generate additional savings in the future.” He further added, “In the first half of the 2026 financial year, the group exhibited a resilient trading performance characterized by stringent cost control, strong credit performance, and a robust net interest margin.”
Furthermore, Close Brothers has strategically repositioned its business to focus on markets offering substantial and sustainable prospects. Despite a slight reduction in the loan book during the first half, the company’s core businesses continued to demonstrate growth. Morgan expressed confidence in the company’s positioning for future expansion as a specialized banking group.