Santander sees more than 2,000 jobs go in ongoing overhaul as profit dips

Santander UK revealed more than 2,000 roles have been cut amid an ongoing cost-saving overhaul as it reported a drop in half-year profits.

The high street lender – whose Spanish parent recently announced a £2.65 billion deal to buy UK rival TSB – said the year-on-year drop in its workforce comes as part of its ongoing “simplification and automation” drive.

It added that the plan was “expected to continue to drive cost efficiencies over 2025”.

Santander reported a 5% fall in pre-tax profits to £764 million for the first six months of 2025.

The group announced last October it was axing more than 1,400 jobs across the UK bank in 2024 and has since warned around another 750 jobs were at risk after it revealed in March that it was closing another 95 branches and reducing hours at some 50 sites.

Santander is also awaiting the outcome of a crucial Supreme Court judgment on the car finance commission scandal on Friday, which is set to have a bearing on the Financial Conduct Authority’s plans for a compensation scheme.

The bank has already put by a £295 million provision in 2024 for the affair, which it said “continues to reflect the Santander UK group’s best estimate”.

But it cautioned the outcome could have to change following the judgment.

The group said: “Santander UK will consider the outcome of the Supreme Court judgment and any subsequent steps the Financial Conduct Authority proposes to take once known, which could lead to a change in the value of the provision.

“As such, the ultimate financial impact could be materially higher or lower than the amount provided.”

Its half-year results showed mortgage loans were flat at £167.2 billion in the first half, but said it continues to expect a “gradual return” to net mortgage lending in 2025, adding its pipeline was good heading into the second half.

Mike Regnier, chief executive of Santander, said Banco Santander’s recent deal to buy TSB from Spanish rival Sabadell would speed up the bank’s transformation.

He said: “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.

“Banco Santander’s recent agreement to acquire 100% of TSB from Sabadell accelerates our transformation, allowing us to enhance our customer proposition and invest more in innovative products and our digital offering.

“This is an excellent deal for customers, combining two strong and complementary banks.”

The takeover is expected to be completed in the first quarter of 2026.