Santander UK Freezes Salaries and Cuts Jobs in Commercial Banking Amid Restructuring Efforts.

In a decisive move to streamline operations, Santander UK has announced a freeze on salaries, reductions in bonuses, and up to 200 job cuts within its commercial banking division. The restructuring includes reassigning staff to roles with pay bands up to 25% lower, though existing salaries remain unchanged. Employees in the Santander Navigator unit, launched three years ago, face potential redundancy. These measures are part of a broader strategy to enhance efficiency amid regulatory pressures and financial challenges.

The bank is also addressing the financial implications of a car finance commission scandal, with analysts estimating potential compensation costs up to £1.9 billion. Additionally, Santander UK has canceled staff events, including its annual charity cricket match, as part of cost-cutting efforts.  Despite these changes, Santander maintains that its UK operations are a core part of its global business and are not for sale, even after rejecting an £11 billion acquisition bid from NatWest earlier this year.

This restructuring follows previous workforce reductions, including the elimination of approximately 2,000 positions last year and the planned closure of 95 high street branches, putting around 750 jobs at risk.  The bank aims to shift more new hires outside London to areas with lower salary expectations. While these measures aim to position Santander UK for long-term stability, they have caused unrest among staff and raised questions about the bank's commitment to its UK workforce.