The Close Brothers banking group is undergoing significant restructuring which will see approximately 600 jobs cut from its workforce across the UK and Ireland. This move comes in light of the company's ongoing financial struggles, primarily due to a mounting compensation bill stemming from a car finance scandal. With a current workforce of 2,600, the upcoming cuts represent nearly 25% of its employees and are expected to take place over the next 18 months.

To address these challenges, Close Brothers has revised its cost-reduction targets, aiming to save around £25 million by the end of its current financial year and an additional £60 million in the subsequent year. The restructuring plan includes outsourcing, offshoring positions, and reducing its physical office spaces. Furthermore, the bank is advancing the implementation of automation and artificial intelligence solutions, which it believes will both cut costs and improve the customer experience.

CEO Mike Morgan expressed regret over the impact this decision will have on employees but stressed that these cuts are essential for the bank's financial recovery. The emphasis on AI and automation indicates a broader trend in the banking sector towards digital modernization, reflecting how companies are adapting to economic pressures while striving to enhance their operational capabilities and customer service.