Co-operative Financial Services (CFS) has axed marketing director David Newman and board-level commercial chief Craig Shannon (pictured) as part of a clear-out of 17 senior managers. The two top marketers have already left the organisation which today announced a restructure that is expected to lead to 1,000 job cuts – 10% of the workforce – among back office staff.
CFS, the financial arm of the Co-operative, has about 6.5 million customers. Its brands include the Co-operative Bank and online bank Smile. It plans to save £100m in annual costs through the restructure.
Newman oversaw the creation of a Co-operative “master brand” uniting the organisation’s different arms. Business management director Shannon was a member of the CFS executive board and had profit responsibility for marketing, general and life insurance and corporate banking. He was appointed to the board in 2003 and was previously marketing director.
A spokesman says the senior management clear-out leaves more than 80 senior executives still in place. Marketing will be handled by CFS chief executive David Anderson and director of distribution and service Stephan Pater.
The spokesman adds: “We are looking at the whole of our management structure as part of today’s announcement. The situation concerning the senior leadership is being looked at in the context of where the business is going from here.”