Co-op Bank plans to cut branch network by at least 15%

Co-op bank has unveiled its rescue plan to cut overall costs that will surely affect a number of jobs.

16:01 04 November 2013

The Co-operative Bank has revealed that they plan to cut their bank network by at least 15% at the end of 2014 with the goal to cut overall costs. This means that they will close down 50 of their 324 branches nationwide.

The shakeup will affect a large number of jobs. The bank said that this move will significantly enhance their internet and mobile banking service.

Euan Sutherland, the group chief executive, has told BBC Radio 5 that they don’t have the specific details about possible cut jobs. He said: "We do need to take the overall costs down, unfortunately [that] will hit jobs, but we don't have the details today."

However, Sutherland was optimistic about the future. He added: "We have taken a major step forward towards achieving our plan to secure the future of the bank.”

The Co-op was forced to come up with rescue plan after it discovered a £1.5bn hole in its balance sheet, which is caused by bad loans and the 2009 merger with Britannia building society.