UK-based Co-operative Bank is, reportedly, planning to cut more than 1,000 jobs in its banking division as part of its restructuring strategy to return to profit and to focus on retail and small business lending.
The job cuts account for almost 10% of its overall workforce, which is around 9,000 in its banking division, reported Sky News.
In May 2013, the bank’s credit rating fell, resulting in £1.5bn loss, and was forced to present a capital action plan to the Bank of England. Under the plan, the bank agreed to sell its life and savings division to Royal London and also sale of its general insurance division.
Following the listing of Co-op Bank’s shares next year, institutional investors led by two US hedge funds, Aurelius and Silver Point Capital, will own the bulk of the bank’s shares.
The Co-operative Group will be the largest single shareholder with 30% stake, while the two US hedge funds Silver will own not more than 10% stake each.
LT2 Group, which is led by Silver Point Capital and Aurelius, said the Co-operative Bank is unique for its ethics, mission and heritage which are an essential component of the bank’s differentiated approach.
"The Co-operative Group Ltd. will remain the Bank’s largest shareholder by far and the Bank will benefit by this connection to the Co-operative movement," LT2 Group added.