Close Brothers banking group to cut 600 jobs and roll out AI ‘at pace’

Close Brothers, a UK and Ireland banking group, announced it will cut 600 jobs, nearly a quarter of its workforce, over the next 18 months due to mounting losses related to the motor finance scandal. The company aims to reduce costs by £25 million this financial year and an additional £60 million the following year through outsourcing, offshoring, and reducing its property footprint. Close Brothers also plans to accelerate the deployment of automation and artificial intelligence to further reduce costs and improve customer experience. The job cuts and cost-saving measures come after the group reported pre-tax operating losses of £65.5 million for the six months ending March 31, having allocated an additional £135 million for car loan mis-selling compensation, bringing the total provision to £300 million. The company's shares also recently declined following a report questioning the adequacy of their compensation provisions.

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