Santander UK, the British arm of Spain’s Banco Santander, announced on Wednesday its plan to close 95 of its 444 branches, a move that puts approximately 750 jobs at risk.
The decision follows a 63% increase in digital transactions since 2019, while financial transactions in physical branches have dropped by 61% over the same period.
These closures, set to begin in June 2025, will reduce Santander UK’s branch network by nearly 20%. Following the changes, the bank will operate 349 outlets, including 290 full-service branches and 36 with reduced hours.
Like many other banks in Britain, Santander has been cutting branch numbers as more customers transition to digital banking. However, the move has faced criticism from UK lawmakers, who argue that reducing the number of physical branches makes it more difficult for local businesses and vulnerable customers, particularly in rural areas, to access essential banking services.
In September 2024, the Financial Conduct Authority (FCA) introduced new rules requiring banks to ensure that communities have access to free alternative cash services before closing branches.
“As a business, we must move with customers and balance our investment across all the places where we interact with them, to deliver the very best service now and in the future,” Santander UK stated.
“Closing a branch is always a very difficult decision, and we spend a great deal of time assessing when and where we do this and how to minimize the impact on our customers.”
The bank said it is consulting employee unions and will provide support to affected staff, including assistance in finding alternative roles within the company.
Santander UK currently employs approximately 18,000 people, according to its annual report. The bank reported a 38% decline in annual pre-tax profit, falling to £1.33 billion in 2024.
Last month, Banco Santander reaffirmed its commitment to its UK division, stating that it remains a key part of its global business and is not for sale, following media speculation that it was reviewing its presence in Britain.
In January 2025, reports suggested that Barclays had approached Santander about a potential acquisition offer, but discussions did not progress beyond the early stages.
