1,900 UK jobs axed

Santander-owned banks Abbey, Alliance & Leicester and Bradford & Bingley are cutting 1,900 jobs across their businesses to save costs.

Headcount reductions will be back-office and support staff and will take place during 2009, Santander said.

The banks will not be closing any branches or major sites, although some smaller offices may be consolidated, the group added.

António Horta-Osório, chief executive of the combined UK business, said: "Today's announcement shows we are on track to fulfil the commitment we made at the time of the Alliance & Leicester acquisition to grow our UK business whilst ensuring we meet our cost saving targets."

The acquisition of Alliance & Leicester expanded the Spanish banking giant's presence in the UK and the combined brands have a market share of above ten per cent in mortgages, savings and branches.

However, Santander said at the time it would be cutting costs by £180 million by the end of 2011.

Andy Kerr, Communication Workers Union (CWU) deputy general secretary, said: "While job losses have been expected following the takeover by Santander, we are determined to ensure that A&L follows the voluntary route to job losses."

Nigel Cotgrove, national officer of CWU, added: "Santander has confirmed that the biggest sites at Carlton Park and Bootle are not at risk, and that the branch network size is to be maintained.

"While this will provide welcome reassurance for many of our members, the suggestion that smaller sites may be consolidated into larger ones raises serious questions over some locations around the UK."