The Co-op bank has just announced significant cuts across its UK branches, resulting in a huge number of job losses and an expected 50 branch closures. The company has promised to improve its mobile and internet banking in response to this. Plans to try and prevent the closures were revealed last week, with an expected 70% of the company’s shares being left in the hands of creditors, and only 30% left to Co-op itself. The bank came into trouble when they merged with another building society 4 years ago. As a result of this and a number of poor loans, it discovered a huge hole in its bank balance, which in-turn resulted in a recent rescue plan being put into place.
The bank has admitted that the cuts are vital in order to keep the company in existence, and ultimately job cuts are going to be the first cause of action. The company has done their best to convince customers that their money will remain secure, and is positive about the future of the bank. In a bid to save the Co-op bank brand, the company has written a list of principles and company ethics to convince customers of their stability.
With a rescue strategy in place, and funds ready to go towards securing the organisation, it seems the company is heading in the right direction. The Co-op Bank intends to return to the London Stock Exchange next year; they now need investors to have faith in the company to ensure they aren’t resolved by the Bank of England. But for now, it’s some what of an unstable future for the British bank and a feeling of insecurity for staff and their jobs.