Metro Bank has begun another round of redundancies, marking the third such move in as many years, as it seeks to reduce costs, reported the Financial Times. 

Around 100 employees have been told their jobs may be cut, as part of an ongoing review aimed at concentrating on areas likely to enhance business growth, two unnamed sources said. 

This announcement continues a period of workforce reductions under chief executive Dan Frumkin, who has directed operational changes when the lender narrowly avoided collapse in 2023.  

Frumkin’s strategy has included a transition away from Metro Bank’s traditional retail banking services towards increased corporate lending. 

Over recent years, Metro Bank has reduced its headcount by more than 1,000 positions. In late 2023, 850 job losses were disclosed, later rising to 1,000 in 2024.  

Later that year, the bank confirmed plans to remove a further 300 roles across business operations, IT, and support functions following an outsourcing agreement with Infosys for some technology services. 

A source with knowledge of the current process indicated that job cuts will affect various business areas.  

However, following the mandatory consultation period, it is anticipated that actual departures will be fewer than initially proposed. 

In response, Metro Bank said: “We regularly review our operations as we invest in growth areas, deliver our strategy and enhance our proposition for customers.” 

Established in 2010 as the UK’s first new high street bank in a century, Metro Bank joined the London Stock Exchange in 2016 with a valuation of £1.6bn ($2.2bn).  

The bank faced financial strain in 2023 after revealing that regulators had not approved changes to its mortgage capital requirements. 

This led to a substantial fall in its share price and a subsequent emergency fundraising that saw Jaime Gilinski Bacal become its majority shareholder. 

Since then, Metro Bank has shifted its focus toward specialist lending for small and medium-sized enterprises. The bank reported pre-tax earnings of £43m for the first half of 2025. 

Metro Bank was also reclassified as a “transfer firm” by the Prudential Regulation Authority at the beginning of this year, a change that relieves it from holding certain types of debt intended for regulatory intervention during crises, noted the report. 

Last year, the bank agreed to sell an unsecured personal loan portfolio, valued at £584m ($739.5m), as part of efforts to reshape its balance sheet and improve risk-adjusted returns on capital.