'Significant' Co-op Bank job cuts

The Co-op Group chief executive has admitted "significant job losses" will be made at the Co-op bank under the terms of its rescue deal, with "thousands" set to be made redundant. He said the around 50 of its 324 branches by the end of next year.

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Co-op plan 'good news for customers and colleagues'

The Co-operative Bank's rescue plan is "the best outcome from what is a very difficult situation" and it is "good news for customers and colleagues", the group's chief executive Euan Sutherland said.

In a video posted onto YouTube by the company, he said:

Mr Sutherland had earlier told Sky News there would be "significant" job losses and around 50 of its 324 branches would close by the end of 2014.

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'Thousands' to lose their jobs in Co-op Bank rescue plan

The Co-operative Bank's rescue plan will see "significant job losses" with "thousands" set to be made redundant, the group's chief executive Euan Sutherland told Sky News.

The Co-op Bank has unveiled its rescue plan. Credit: PA Wire

Mr Sutherland was asked whether the job losses would be in the hundreds or the thousands and he replied "in the thousands" but did not reveal the exact number.

He said the bank will close around 50 of its 324 branches by the end of 2014.

Co-op chief: 'Very positive day in the rescuing of bank'

Co-op Group's chief executive Euan Sutherland told BBC Radio 4's Today programme:

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"This is a very positive day in the rescuing of the Co-operative Bank," says Chief Executive Euan Sutherland #r4today

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"We believe all of the investors involved will be positive about the future of the bank," adds Co-op Chief Exec Euan Sutherland #r4today

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Co-op expected to boost bank with insurance firm sales

The Co-operative is expected to inject around £400 million into the banking business through the sale of its two insurance businesses, according to The Sunday Telegraph.

Co-op Bank branch
Co-op Group insists it will retain "effective control" of the bank as it will be its biggest single shareholder Credit: PA

But this is less than the £1 billion of capital the Co-op initially expected to pump in to meet City regulator rules to strengthen its balance sheet.

Several thousand small retail investors, who invested an average of £1,000 each in the high-yielding bonds for a steady income, are expected to be handed income-paying bonds.

This follows campaigning against the initial plan which would have given them shares in the bank.

However, the new bonds will pay a lower rate of dividend.

Co-op Bank rescue plan details to be unveiled

Details of the The Co-operative Group's plan to save its troubled banking arm will be released today.

The revised plans could involve axing around 1,000 jobs, over 10% of the banks' workforce, according to reports.

Co-op Bank branch
The Co-op has faced tough questions over the impact of the new plan on the bank's ethical values. Credit: PA

The Co-op declined to comment on the job loss plan, and it is unclear whether the final number of job losses will be released today.

It struck a deal last month to save the bank, but the move will see it hand over control to a group of powerful investors, keeping only a 30% stake.