British lender Metro Bank is cutting around 300 jobs and asking Infosys for an IT overhaul to achieve savings of £80 million a year.
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The job cuts will occur across Metro’s business, IT and support departments, according to the company Daily Mail.
They come on top of a 20% workforce cut – more than 850 employees – announced late last year as the troubled lender secured a £925m rescue deal after an accounting scandal shook the loss-making company to its core.
The company, which was an enthusiastic supporter of the branch banking model when it launched in 2010, is aiming to transition to a more cost-efficient business model by reducing store opening hours, investing in automation of service and back-office operations and improving digital channels , especially for deposits.
The Infosys deal aims to achieve this by leveraging the provider’s Topaz generative AI technologies to deliver a “simpler, more consistent customer experience.”
Daniel Frumkin, CEO of Metro, says: “At the end of this transformation we will be a very different company, but the true essence of Metro Bank will remain the same – a high-quality service organization that puts the customer at the centre.”
“Metro Bank expects to deliver annual cost savings of £80 million this year through a number of initiatives as it moves towards the target of achieving a medium to high return on tangible equity by 2027.”