Santander completed its purchase of TSB from Spanish lender Sabadell on 30 April, finalizing a £2.65 billion cash deal that brings the combined group to roughly 23,000 employees.
Following the merger, unions at both banks have begun negotiating how staff in overlapping roles will be evaluated for potential redundancies.
The merged entity has set a target of £400 million in cost savings, a figure that will be achieved through a mix of operational efficiencies and workforce adjustments.
TSB has already announced 130 job cuts ahead of the transfer of staff under the Transfer of Undertakings (Protection of Employment) regulations, with additional reductions expected as the savings plan is implemented.
Because Santander and TSB use distinct performance metrics, representatives are discussing the creation of a single, unified system to guide redundancy decisions.
One union representative noted that while mergers deliver synergies, they inevitably lead to role duplication and the need to assess each position carefully.
A Santander spokesperson stated that no operational decisions regarding job changes have yet been made, but employees will be notified at the appropriate time.
The TSB spokesperson added that consultation with affected colleagues remains a priority whenever changes are considered.
Under TUPE rules, employees’ terms of employment and continuity of service transfer to the new owner, with redundancy being one of the few exceptions.
The chief financial officer highlighted that cost savings will arise from overlapping projects rather than exclusively from job cuts or branch closures.
In light of the impending reductions, many TSB staff have begun searching for new employment opportunities.
A separate dispute concerns TSB’s new requirement that about 5,000 employees work from an office three days a week starting in April 2027, prompting union action for members who cannot accommodate the change.
The TSB brand will be retired and folded into Santander’s UK arm, ending a name that traces its origins back to a Dumfriesshire parish savings scheme founded in 1810.
Integration of the two banks is overseen by the chief risk officer, who took charge of Santander UK at the beginning of March.
