The Bank of England (BoE) is reportedly planning to reduce staff numbers amid increasing budget constraints in executing operational reforms recommended by Ben Bernanke. 

The central bank has invited employees to volunteer for potential layoffs, under a time-limited redundancy scheme, reported Bloomberg, citing sources. 

This process is open until mid-January 2026, and departures are expected from March 2026. 

BoE confirmed the scheme in a statement, noting it had agreed to increase the pay rise for staff by 3% next year, the report said. 

The job cuts follow an overhaul of the bank’s forecasting and communications systems in response to Ben Bernanke’s 2024 report. 

Bernanke’s report found that BOE’s forecasting errors during post-pandemic inflation were similar to those at other central banks. However, the report highlighted an urgent need for infrastructure reform. 

These reforms, alongside ongoing technology infrastructure repairs and additional recruitment, have raised concerns about funding levels among bank officials. 

The BoE has not set a specific target for the number of staff reductions and may not accept all voluntary applications. 

As per the most recent annual report, the bank’s headcount increased by more than 300 to 5,731 in the year to the end of February 2025, reported The Guardian. 

In a meeting held in July this year, BoE’s directors approved a three-year budget plan, which included a condition that the bank must meet the efficiency target in the next financial year. 

If the bank fails to achieve its efficiency target, it may need to raise charges on the UK’s banking and financial services sector. 

Unite, the trade union which represents the bank’s employees, stated that it “will always oppose any compulsory job losses across the financial services sector,” adding that the job-cutting process must be transparent and fair. 

In July this year, the BoE announced changes to its mortgage lending regulations, allowing British organisations to issue a higher volume of mortgages.