Santander and TSB staff brace for job cuts after £2.65billion takeover

Workers at Santander and TSB are preparing for potential job losses following Santander's £2.65billion takeover of the high street lender.

Union representatives at both banks have begun negotiations to establish a fair process for assessing employees working in overlapping roles, according to sources familiar with the discussions.

The talks come as staff await confirmation of how many jobs could be affected during the integration of the two businesses.

Both banks currently use different performance measures to assess employees, meaning union representatives are now working to agree a single framework for determining how overlapping roles will be evaluated.

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Santander has not confirmed the total number of jobs that could be affected, although uncertainty continues to grow among employees as the merger progresses.

The combined banking group now employs around 23,000 members of staff across the two organisations.

Banco Santander, the Madrid-based parent company, has already confirmed 130 jobs will be cut at TSB before employees formally transfer under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE).

Further redundancies are widely expected as Santander targets £400million in cost savings from the acquisition.

One source said: "It goes without saying that in any merger there are going to be synergies that the banks will realise. And there is going to be an impact on jobs."

They added: "There will be duplication of roles. I'm sure every role will be evaluated, wherever there are people doing similar roles."

The comments reflect expectations that overlapping positions across the two banking businesses will be reviewed as part of the integration process.

Sources indicated sentiment among Santander employees has been relatively positive compared with earlier concerns that the Spanish banking group could withdraw from the UK market altogether.

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The mood at TSB is understood to be more uncertain, with some employees reportedly seeking alternative jobs amid expectations that the acquired business could bear the brunt of any future redundancies.

A Santander spokeswoman said: "We have not yet made operational decisions on jobs [as part of the integration]. However, we will ensure that our colleagues are informed of any changes at the appropriate time."

A TSB spokesman said: "Whenever we make any changes to our business, the priority is to consult first with impacted colleagues to ensure they're fully supported."

Last year, Banco Santander chief financial officer José García Cantera sought to reassure staff that the planned savings would not be achieved solely through job cuts or branch closures.

He said many of the efficiencies would come from ending projects already under way at TSB that would no longer be required once the two businesses had been integrated.

Mr García Cantera said: "Yes, we think there will be savings; yes, we think these savings will offer us better products at lower cost to the customers; but not all of these costs [savings] will come from job cuts or branch closures."

Santander has yet to outline the full impact of the takeover on its workforce, with discussions between management and union representatives continuing as plans for the integration of the two banks develop.

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