Close Brothers to Cut 600 Jobs Following Profit Slump
The British lender will cut 600 jobs by 2027 to reduce costs following a profit drop. Earnings fell to 65.2 million pounds amid a motor finance scandal.
The United Kingdom-based lender Close Brothers Group plc has announced it will reduce its headcount by 600 roles by fiscal year 2027. This decision is part of a strategic initiative to manage rising costs associated with the motor finance mis-selling scandal, which has impacted the firm's earnings through higher provisions and increased administrative expenses. Regulatory scrutiny has also slowed growth in the company's motor finance division. For the first half of the year, the group reported an interim adjusted operating profit of 65.2 million pounds ($86.65 million), down from 80.5 million pounds in the first half of 2025. Chief Executive Mike Morgan emphasized the necessity of these cuts for the company's future. > \"While the impact on affected colleagues is regrettable, these actions are necessary to structurally lower our cost base.\" The restructuring aims to create a more sustainable cost structure as the bank navigates ongoing regulatory challenges in the British market.
