Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

TSB employees face 650 job cuts in next few days

John Wilcock
Wednesday 09 December 1992 00:02 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

TSB, Britain's sixth-biggest bank, will axe 650 jobs from its branch network over the next few days in a restructuring programme aimed at slashing costs and improving branch efficiency.

The job cuts, which TSB revealed last night, will include 400 junior managers. The total exceeds a number outlined in a warning last month, when the bank said that 440 jobs would be shed as part of the merger between the banking and insurance divisions.

The bank said it did not know how many of the cuts would be compulsory. Graham Wallace, a TSB spokesman, said: 'The positions are going. It remains to be seen how things will work out.'

The cuts reflect a labour shakeout in the financial sector similar to that suffered by British manufacturing in the early 1980s. The big four clearing banks alone have cut a fifth of their branch workforce, roughly 50,000, in the past two-and-a-half years.

Analysts expect another 50,000 banking jobs to go before the recession is over.

The banking union Bifu complained when TSB first mooted the present cuts in November that many of them were likely to involve compulsory redundancies.

John Townsend, assistant secretary of Bifu, said last night that the union was conducting a ballot of its members over possible industrial action against TSB. The result of the ballot will be known on 21 December.

He said the union was also calling for an extraordinary general meeting of TSB's shareholders to discuss the job cuts.

Mr Wallace said last night that TSB would brief staff on the job losses over the next few days. The cuts will be spread evenly around the 1,400-branch network, leaving the total roll-call at more than 25,000, he said.

TSB has been under particular pressure to cut costs due to huge property-related bad debts at its merchant bank subsidiary, Hill Samuel.

In 1991 the bank made its first full-year loss but analysts are hopeful it will return to profit with its next annual figures in January.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in