Santander Bank has announced plans to reduce over 1,400 jobs in the UK this year as part of a cost-cutting initiative. Hector Grisi, CEO of Santander, confirmed at a recent press conference that 1,425 jobs will be impacted as the bank accelerates automation across its operations. This strategic move aims to streamline processes, with most redundancies expected to be completed by year-end.
The job cuts follow a significant legal decision affecting Santander UK’s financial operations. The UK branch has postponed its latest financial results release to assess a Court of Appeal ruling on commission practices in car finance agreements. The court’s decision sided with consumers, setting a precedent that requires dealers receiving commission from lenders to disclose details to customers. Santander, which also offers car finance loans, stated that the ruling imposes a higher level of transparency than previously required.
Santander UK has expressed disagreement with the court’s conclusions, suggesting that this new regulation could have a substantial impact on its business model. However, the company noted that it is too early to accurately estimate the financial implications of the ruling. Santander’s position aligns with Lloyds Banking Group, which is also evaluating the potential effects of the judgment.
Despite these challenges, Santander’s global financial performance remains strong. The Madrid-based bank reported a pre-tax profit of €4.9 billion (£4.1 billion) in Q3, reflecting an 11% increase from the previous year. Santander’s executive chair, Ana Botin, stated that the bank is on track to meet its targets despite geopolitical uncertainties and aims to sustain its growth trajectory into 2025.
