Yorkshire and Clydesdale banks are to axe 1,700 jobs as part of a major restructuring operation ordered by parent company National Australia Bank, seeking cost reductions of 125m.
Both Clydesdale Bank in Scotland and Yorkshire Bank in the north of England have been hit by higher costs and declining profit margins.
The move, costing NAB 116m, will cause job losses coming over the next 12 to 18 months. All areas of the business will be reviewing, but losses will be primarily in non-customer facing roles.
Around 40 branches of both Yorkshire and Clydesdale will be converted into financial solutions centres, focusing on high net-worth individuals, earning over 60,000 a year.
NAB UK chief executive Lynne Peacock said she wanted to concentrate on making the UK businesses more nimble and customer focused.
She says: We have made it clear that we are committed to a strong presence in the UK, but to do so we must change the way we do business.