Santander UK revealed more than 2,000 roles have been cut amid a 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 decrease in its workforce comes as part of an ongoing “simplification and automation” drive.
Santander, which is one of the biggest banks in the UK, said the plan was “expected to continue to drive cost efficiencies over 2025”. It reported a 5% fall in pre-tax profits to to £764 million for the first six months of 2025. Last October, the group announced it was cutting more than 1,400 jobs across the UK bank in 2024 and went on to warn that a further 750 jobs were at risk after it announced in March that another 95 branches were being closed and hours were being reduced at some 50 sites in a blow to British high streets.
Santander is also awaiting the outcome of a Supreme Court judgment on the car finance commission scandal on Friday.
The crucial judgement 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”.
However, 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.”
Santander’s half-year results showed mortgage loans were flat at £167.2 billion in the first half of 2025.
However, the bank said it is still predicting a « gradual return » to net mortgage lending this year, saying its pipleine was good going into the second half.
Chief executive of Santander, Mike Regnier, said the recent deal to buy TSB from Spanish rival Sabadell would « accelerate » 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 complete in the first quarter of 2026.
