SANTANDER UK FREEZES PAY, CUTS JOBS AND BONUSES – It is part of broader restructuring effort to make the bank more appealing to potential buyers
Santander UK is implementing a pay freeze, reducing bonuses, and cutting jobs within its commercial banking division as part of a broader restructuring effort aimed at making the bank more appealing to potential buyers.
Earlier this month, the bank began reassigning staff to new teams and altering job titles without prior warning. These changes are part of a wider review of the UK arm of the Spanish bank, which has reportedly grown increasingly frustrated with regulatory pressures and rising operational costs.
The abrupt nature of the changes has caused discontent among employees—many of whom have been moved into roles with pay bands up to 25% lower than their previous positions. Although the bank cannot legally reduce salaries, it has frozen the pay of staff now placed in lower pay brackets. Internal emails also reveal that workers were warned about changes to their bonus structures, which are expected to reduce overall payouts.
In addition, staff in the Santander Navigator division—a service launched just three years ago as a key platform for international trade—have been placed at risk of redundancy.
Altogether, the salary freezes, bonus reductions, and job cuts could impact as many as 200 employees.
The cost-cutting measures come as the bank braces for the financial impact of the unfolding car finance commission scandal, which analysts at RBC Capital estimate could cost Santander up to £1.9 billion in customer compensation.
