1,000 Co-op jobs at risk in wake of bank rescue deal

Over 10 per cent of the Co-op Bank’s 9,000-strong workforce face the axe as part of the jobs cull, with the brunt of the redundancies expected across its corporate lending business.

It is understood the final number of job losses is still being decided and may not be announced alongside the Co-op’s update on its recapitalisation plan due on Monday.

The Co-op declined to comment on the job loss plan.

It struck a deal last month to save its battered banking arm, but the move will see it hand over control of the ethical lender to a group of powerful investors.

The customer-owned group will be left with only a 30 per cent stake in the Co-operative Bank after US hedge funds and big blue-chip investors such as pension funds and insurers won a battle to scrap previous plans that would have seen them take a minority stake in return for a £500m loss.

Further details on the new rescue deal will reveal the Co-operative is to inject around £400m into the banking business through the sale of its two insurance businesses, according to The Sunday Telegraph.

But this is less than the £1bn of capital the Co-op initially expected to pump in to meet City regulator rules on balance sheets.