Spanish sharpen Abbey jobs axe

UP to one in 10 of Abbey National's 25,000 workers face the chop if Banco Santander's £8.2bn takeover bid is a success.

The Spanish financial services giant reckons it can reduce headcount by up to 2,500 over four years, largely through normal staff turnover.

That may not be enough to placate banking unions, which fear huge losses as part of £300m cost savings announced last week.

But it would be fewer than the number axed if another British bank, such as HBOS, gatecrashed the deal.

Santander wants many of Abbey's back- office staff moved to branches to beef up customer service.

Headed by Emilio Botin, the group is expected to expand Abbey's High Street outlets beyond its current 750 branches. The pastel frontages introduced by chief executive Luqman Arnold look likely to be axed in favour of a bolder design.

A partnership with Costa, which put coffee shop stands inside Abbey branches, is also tipped to go.

Botin believes in 'local' management. Sources say he will hunt for a British boss to lead Abbey once Arnold leaves next summer.

Santander could reintroduce its London stock market listing if enough small investors are reluctant to be paid in Spanish shares.

Uncertainty still hangs over the future of Abbey's Scottish Provident and Scottish Mutual insurance operations. Sources say Santander has not decided whether to keep them.