Fears are mounting over plans for around 1,000 job cuts at the Co-operative Group's troubled banking arm as it prepares to unveil details of a revised rescue deal today to plug a £1.5 billion hole in its finances.
Over 10% of the Co-op Bank’s 9,000-strong workforce face the axe as part of the jobs cull, with the brunt of the redundancies expected across its corporate lending business.
It is understood the final number of job losses is still being decided and may not be announced alongside the Co-op’s update on its recapitalisation plan due today. The Co-op declined to comment on the job loss plan. It struck a deal to save its battered banking arm, but the move will see it hand over control of the ethical lender to a group of powerful investors. The customer-owned group will be left with a 30% stake in the Co-operative Bank after US hedge funds and big blue-chip investors such as pension funds won a battle to scrap previous plans.