Santander UK has reduced its workforce by more than 2,000 positions as part of its ongoing strategy to cut costs and increase automation.  

The job reductions come as the bank’s UK unit reported a 5% decrease in pre-tax profits, which fell to £764m for the six-month period ending June 2025.  

According to a PA media report posted on Yahoo Finance, Santander UK CEO Mike Regnier cited “simplification and automation” as key factors in the workforce changes, with plans to continue focusing on digital transformation and revises its staffing approach. 

Regnier said: “Transformation is not a one-off thing. 

“Whilst we have done a lot over the past year, our transformation journey will need to continue.” 

He further stated that job cuts “might well be” on the horizon by the end of 2025 as part of the bank’s ongoing restructuring efforts. 

It is the second round of job reductions in under a year, following a previous announcement in October 2024 to cut over 1,400 jobs in the UK. 

This workforce reduction announcement follows Santander’s Spanish parent company’s agreement to acquire UK bank TSB for £2.65bn from Sabadell. 

Overall, Santander Group reported a 13% increase in attributable profit, reaching €6.8bn in the first half of 2025 compared to the same period last year.  

The bank also saw a 7% rise in profit for the second quarter, reaching €3.4bn, marking five consecutive quarters of growth. 

Customer funds, including deposits and mutual funds, rose by 6% in constant euros in the first half of 2025, with deposits up 4% and mutual funds increasing by 17%. 

The TSB acquisition is expected to deliver a return on invested capital of over 20% and enhance Santander UK’s return on tangible equity from 11% in 2024 to 16% by 2028. 

The combined entity will have a loan-to-deposit ratio of 107%, slightly lower than Santander UK’s current 108%.