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Natwest to cut 550 jobs in branches and close one office Natwest to cut 550 jobs in branches and close one office
(32 minutes later)
Natwest is cutting 550 jobs in branches across the UK and closing one of its remaining offices in London. Natwest Group is cutting 550 jobs in branches across the UK and closing one of its remaining offices in London.
It said the cuts would be made entirely through voluntary redundancies and there would be no branch closures.It said the cuts would be made entirely through voluntary redundancies and there would be no branch closures.
The job losses are part of a cost-cutting drive as the lender tries to adapt to more people banking online. The job losses are part of a longer term effort to adapt as more customers bank online and cut costs.
The trend has accelerated during the coronavirus pandemic as people have stayed away from high streets and used physical branches less. But the bank, formerly known as RBS, is also under pressure to cut costs due to the pandemic amid fears it could face billions of pounds worth of bad loans.
A NatWest spokesperson said: "We have to respond to changing customer behaviour and the rising customer demand for digital banking services.A NatWest spokesperson said: "We have to respond to changing customer behaviour and the rising customer demand for digital banking services.
"We have taken the decision to invite applications for voluntary redundancy and will support those colleagues who apply with a comprehensive support package.""We have taken the decision to invite applications for voluntary redundancy and will support those colleagues who apply with a comprehensive support package."
The banking group, which is part of Natwest group, formerly known as RBS, said the cuts had been on the cards before the pandemic as it had seen a steady decline in branch transactions in recent years. The banking group told the BBC the cuts had been on the cards since before the pandemic as it had seen a steady decline in branch transactions in recent years.
It has also been trying to achieve £250m of cost savings to make itself more competitive. However, it has seen more of its customers turn to online banking during the coronavirus pandemic as people have stayed away from high streets and used physical branches less.
However, Covid-19 has accelerated the shift away from people banking in branches, putting pressure on already struggling lenders. Exacerbating this, many of its branches had reduced their opening hours before lockdown restrictions were eased, while some shut temporarily due to staffing issues.
Before lockdown restrictions were eased, many branches reduced their opening hours, while some shut temporarily due to staffing issues. Rising costs
Branch woes Prior to the pandemic, Natwest Group was in the midst of a £250m cost cutting drive, however its financial woes have intensified since March.
Like other lenders, Natwest group has also been pressing ahead with cost-cutting in anticipation of people defaulting on loans due to the pandemic. Like other lenders it has warned many of its customers could default on loans this year, and it has set aside between £3.5bn and £4.5bn for the whole of 2020 to deal with the consequences.
The group said in July that it expected to set aside between £3.5bn and £4.5bn for the whole of 2020 to deal with the economic consequences of the pandemic. It is not the only lender to have announced job cuts in recent months.
Other lenders have been scaling back as they try to adapt to the shift to online banking. TSB has told its cashiers that their jobs will be phased out at the start of 2021, following a steep decline in customers banking in its branches.
Earlier this year, Lloyds Banking Group announced 56 further branch closures, blaming "changing customer behaviour". In 2019, rival TSB identified 82 branches it planned to close. Clydesdale Bank, now renamed Virgin Money, is also to shed 300 staff as it closes branches.
According to Which?, at least 3,383 bank branches closed in the five years to January 2020, shrinking the network by 34%. HSBC meanwhile has resumed a plan to cut 35,000 jobs worldwide, having paused the plan at the start of the pandemic.