Santander UK's Strategic Job Cuts Amidst Mortgage Market Competition

Spain's Santander has initiated job cuts at its UK unit to reduce costs, impacting its regional headquarters. The cuts coincide with a reported 23% decline in second-quarter net profit due to intense competition in the mortgage market. The bank aims to optimize its team structure for efficiency.

Spain's banking giant Santander has commenced a wave of job cuts at its UK unit in a bid to slash costs, according to a source close to the situation. This move primarily targets the regional headquarters of the Spanish bank, the source revealed to Bloomberg News without specifying the number of affected roles.

The decision comes at a critical juncture, as Santander UK faces a 23% drop in its second-quarter net profits year-on-year, a downturn attributed to the intense competition prevailing in the mortgage market. This financial strain has prompted the bank to streamline its operations for better alignment with customer needs.

In response to inquiries, a Santander spokesperson mentioned that the bank is continuously revisiting its operational strategy to ensure optimal organizational structure. As of June, Santander UK employed approximately 22,214 individuals, highlighting the potential impact of these cost-saving measures.

(With inputs from agencies.)