The job cuts are being implemented by NatWest in the wake of the loan losses expected to occur because of the ongoing Covid-19 crisis, reported Reuters
A branch of NatWest in England. (Credit: David Wright / NatWest Branch / CC BY-SA 2.0)
UK banking group NatWest is set to slash around 550 full-time equivalent jobs across its retail operations besides closing its Regents House office in London.
The job cuts are being implemented by the British bank in the wake of the loan losses expected to occur because of the ongoing Covid-19 crisis, reported Reuters.
A NatWest spokesman told the publication: “We have taken the decision to invite applications for voluntary redundancy and will support those colleagues who apply with a comprehensive support package. There will be no compulsory redundancy as a result of this announcement.”
For the first six months of 2020, the banking group reported £770m in operating loss before tax, in comparison to a profit of £2.6bn in H1 2019. The operating profit before impairment losses for the bank during H1 2020 was £2bn, while the net impairment loss £2.85bn, which included the £802m charge it took from the first quarter.
In the second quarter, NatWest reported an operating loss of £257m.
NatWest job cuts due to increase in digital banking transactions
NatWest is not expected to close any of its branches as part of the current cost-cutting measures, reported the BBC. The publication wrote that the layoffs are part of a longer term plan to adapt to the evolving scenario where an increased number of customers are preferring to do their banking transactions online.
A spokesman of the banking group, has been quoted by the publication, as saying: “We have to respond to changing customer behaviour and the rising customer demand for digital banking services.
“We have taken the decision to invite applications for voluntary redundancy and will support those colleagues who apply with a comprehensive support package.”
As part of a review of its London property strategy, the Regents House office, which can accommodate 2,500 employees, is set to be closed shortly. The bank is also planning to reconfigure its offices in two locations in London.