Santander UK freezes pay and cuts jobs amid commercial banking shake-up
Last updated: 09:45 19 May 2025 BST, First published: 09:31 19 May 2025 BST
Santander UK is freezing salaries, reducing bonuses and cutting roles across its commercial banking division as part of a broader restructuring aimed at streamlining operations and cutting costs.
The overhaul could affect as many as 200 staff and includes changes to job titles and team structures, with some employees reassigned to roles with pay bands up to 25% lower.
While salaries cannot be reduced, pay for affected employees has been frozen. Internal messages also warned of changes to bonus structures expected to reduce future payouts.
Staff in the Santander Navigator division, launched just three years ago as a digital platform for international trade, have been placed at risk of redundancy. The international and transaction banking team has been reclassified as back-office, a move likely to impact future compensation.
The shake-up follows growing cost pressures, including potential liabilities from the UK’s motor finance mis-selling scandal. Analysts estimate Santander could face compensation claims of up to £1.9 billion.
