The Co-operative Bank is axing approximately 400 staff, equating to more than one in 10 of its workforce.
A restructuring consultation will be carried out in an attempt to reduce costs, the bank said in a Tuesday statement.
“Today, we have announced a series of changes across the bank which are essential for the delivery of the next phase of the strategic plan,” the statement read.
“These include the commencement of a consultation on a proposed operating model restructure.
“The decision has not been made lightly, and the bank will continue to work closely with our trade union and to support impacted colleagues.”
Staff were told of the cuts on Tuesday morning, with the roles expected to be axed by August after the consultation concludes.
This comes after the lender recently reported a near-halving in annual profits to £71.4 million for 2023, with £29 million being set aside to cover redress for mortgage customers hit by changes to Co-op Bank's standard variable rates in 2011 and 2012.