Bank of England puts hundreds of jobs at risk in cull

By the Editorial Team · Tuesday, June 30, 2026

The Bank of England has launched a voluntary redundancy program targeting hundreds of jobs to cut costs by £45 million and reduce its workforce by up to 8 percent. This move is part of a wider effort to modernize the Bank’s operations amid rising financial pressures, with potential compulsory layoffs if voluntary exits fall short.

The Bank of England has initiated a voluntary redundancy scheme as part of a £45 million cost-saving effort, placing hundreds of jobs at potential risk. The move aims to reduce the institution’s day-to-day expenditure by approximately 8 percent, a process expected to affect a significant portion of its 5,700-strong workforce.

Last week, the Bank invited the majority of its staff to apply for voluntary layoffs, with a window for resignations open until January and departures anticipated by March. While no specific target for job cuts has been announced, insiders suggest that the scale of reductions could be substantial. The Bank has also indicated that compulsory redundancies may be considered if the voluntary programme fails to meet its objectives.

Employees opting to leave through the scheme will receive a severance package based on 10 percent of their annual salary multiplied by their years of service, capped at either two years’ salary or £150,000, whichever is lower. This initiative forms part of a larger transformation effort prompted by a review led by former U.S. Federal Reserve Chair Ben Bernanke, alongside mounting pressures to modernize the Bank’s technology infrastructure and improve operational efficiency.

A Bank of England spokesperson emphasized the institution’s commitment to managing its budget responsibly to fulfill its statutory mandate of maintaining monetary and financial stability. “We are now implementing a significant, multi-year transformation of our operations and this will condition our decisions,” the spokesperson said. “We are therefore running a mutually agreed, time-limited scheme for staff to choose to apply to leave the Bank. We are committed to ensuring the Bank is efficient, resilient, and fit for the future.”

Certain groups of employees are exempt from the current round of cuts, including staff based at the Bank’s Leeds office, where the workforce exceeds 100 employees and is planned for expansion. Also excluded are the Bank’s senior officials, such as Governor Andrew Bailey, who earns £598,000 annually, his four deputies, and Chief Operating Officer Sarah John.

Earlier this year, John reportedly informed the Bank’s directors about the need to meet an “ambitious efficiency target” to prevent increased levies on Britain’s financial services sector, a message underlining the difficult trade-offs involved in the cost reduction strategy.

The Bank’s workforce has grown considerably over the last decade, rising from fewer than 2,000 employees in 2012 to an average of 5,731 in the financial year ending February 2025. The current reduction strategy marks a significant shift in operational scale.

The trade union Unite, representing many Bank employees, expressed opposition to any compulsory redundancies within the financial services sector. The union stressed the importance of transparency and fairness throughout the job-cutting process.

These staffing changes come as the broader UK labour market faces challenges, with unemployment rising to 5 percent—the highest since 2021. Recent industry reports indicate that hiring activity stalled in June amid uncertainty preceding the Budget announcement, reflecting a cautious approach by employers in the current economic climate.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.