Close Brothers to Cut 600 Jobs in Cost-Saving Plan

Close Brothers, a British banking group, announced plans Tuesday to eliminate approximately 600 jobs across its operations in the United Kingdom and Ireland over the next 18 months, as part of a broader effort to cut annual costs by about 85 million pounds.

The reductions represent nearly a quarter of the company's 2,600-strong workforce and follow recent financial losses tied to a mounting compensation bill from the motor finance misselling scandal. Close Brothers has set aside provisions totaling around 300 million pounds to address claims from customers who were overcharged on car loans, a issue affecting multiple lenders and prompting regulatory scrutiny. In October, the firm added 135 million pounds to its reserves after the Financial Conduct Authority outlined a potential redress scheme for affected drivers.

The job cuts come amid a first-half loss of 65.5 million pounds for the year ending September, an improvement from the 102.2 million pound deficit in the prior year's corresponding period. Adjusted operating profit fell to 65.2 million pounds from 80.5 million pounds a year earlier, reflecting higher provisions and slower lending growth in the motor finance sector due...