Santander UK has announced plans to close 140 branches, placing around 1,270 jobs at risk.
The decision has been taken in response to the changing banking habits of the consumers, the Spanish banking group said in a statement.
Go deeper with GlobalData
It stated that the number of transactions carried out through Santander branches dropped by 23% over the past three years.
In the same period, transactions via digital channels soared by 99%.
Santander branch closures: Details
The bank noted that it has already consulted the trade unions on the proposed changes. About one-third of the total employees to be affected by the decision are expected to be re-deployed in other roles.
The bank added that it will support other employees in rehabilitation, as the consultation process with trade unions will continue.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAdditionally, Santander will support the customers affected with closing branches with alternative banking options. It includes offering access to digital, telephone and Post Office banking services.
Following the closures, to be effective within this year, Santander will retain 614 branches in the UK.
Santander head of retail and business banking Susan Allen said: “The way our customers are choosing to bank with us has changed dramatically in recent years, with more and more customers using online and mobile channels.
“As a result, we have had to take some very difficult decisions over our less visited branches, and those where we have other branches in close proximity.”
The trimming of the network is said to be part with the Santander’s future branch network strategy.
It aims to shape its branch network in a combination of larger branches to offer improved community facilities and smaller digital offices.
As a part of the plan, Santander will invest £55m to refurbish 100 branches in the UK over the next two years.
