Co-operative Financial Services, which comprises the Co-operative Bank and Co-operative Insurance, has announced plans to cut 1,000 back office staff.
The news comes as the company announced plans to cut £100m from back office costs by the end of June 2008. At the same time, it is expanding front office capabilities by investing £250m in customer facing parts of its retail and corporate banking and general insurance businesses.
The detail of the job cuts has yet to be finalised, but IT staff are likely to be among those under threat.
A spokesperson at the company told Computerworld UK: “We haven’t yet decided where the cuts will take place, but will drill down and see over the next eight to 12 weeks.”
The company is also reviewing its contracts with suppliers as part of the cost-cutting plan.
Co-op's rationalisation plan comes during an otherwise strong time for IT spending among financial services businesses, as highlighted by a recent survey from the Confederation of British Industry and PricewaterhouseCoopers.