Santander Cuts 2,000 Jobs and Closes 95 Branches in Cost-Cutting Move

Santander has announced significant job reductions, cutting over 2,000 positions and closing 95 branches as part of an ongoing cost-cutting initiative. This decision follows a reported decline in the bank’s half-year profits and is aimed at streamlining operations amid a growing shift towards online banking.

The banking giant, which is headquartered in Spain but operates extensively in the UK and other regions, detailed its plans earlier this year, revealing that it would also reduce operating hours at an additional 50 sites. Following these changes, Santander will maintain 290 full-service branches across the UK.

In March 2024, Santander had indicated that approximately 750 jobs could be at risk due to these closures. The trend of downsizing physical locations reflects broader industry patterns, as traditional banks face increasing competition from online-only challengers that often provide more attractive financial products with lower operational costs.

Strategic Changes and Future Plans

In a broader context, Santander’s restructuring is part of a strategic effort to enhance efficiency and customer service. The bank’s chief executive, Mike Regnier, expressed confidence that these changes would strengthen the bank’s position. “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,” he stated.

Additionally, Santander recently announced a £2.65 billion agreement to acquire UK rival TSB, with the transaction expected to finalize in the first quarter of 2026. Regnier highlighted that this acquisition would accelerate Santander’s transformation efforts and improve its offerings to customers. “This is an excellent deal for customers, combining two strong and complementary banks,” he added.

As part of its ongoing adjustments, a list of branches that are either closed or set to close has been released. Notable closures include locations such as Aberdare, Arbroath, and Bognor Regis, with specific dates ranging from June 16 to August 15, 2024. This realignment of branches comes at a time when customer preferences are increasingly leaning towards digital banking solutions.

Impact on Workforce and Banking Landscape

The job cuts and branch closures are reflective of a significant shift in the banking landscape. Major banks, including Santander, are adapting to changes in consumer behavior, which has seen a rapid increase in online banking. Customers are opting for convenience and efficiency that digital services offer, leading to a decline in foot traffic at physical branches.

In recent years, the banking sector has faced challenges from new entrants that operate exclusively online, often providing more favorable interest rates and lower fees. These factors have compelled established banks to reevaluate their operational models and focus on cost reduction.

As Santander moves forward with its strategic overhaul, the implications for its workforce and customer service capabilities remain to be fully realized. The bank’s commitment to investing in technology and enhancing customer experiences will likely be crucial in navigating the competitive landscape ahead.