Santander UK has begun freezing salaries, reducing bonuses and cutting jobs across its commercial banking division as part of a broader restructuring that could make the bank more attractive to potential buyers.

The Spanish-owned lender has unexpectedly changed bankers' job titles and reorganised staff into new teams, with many employees being moved into positions where pay ranges are up to 25 per cent lower than before, according to internal communications seen by The Guardian.

While the bank cannot reduce current salaries, it has frozen pay for staff who now find themselves in lower pay brackets. Employees have also been warned about changes to their bonus schemes, which are expected to result in reduced payouts.

Staff at the bank's Santander Navigator platform, launched three years ago as a "one-stop shop for international trade", have been put at risk of redundancy. The measures could affect up to 200 employees in total.

A spokesperson for Santander UK said: "We are moving to a fairer, more transparent bonus structure across Santander UK, which will promote high performance at every level of the bank. We regularly review job data across the bank, and we annually agree salary increases with our recognised trade unions."

The restructuring comes as Santander prepares for potential fallout from the car finance commission scandal, which analysts at RBC Capital estimate could cost the bank up to £1.9bn in compensation to former borrowers.

Earlier this year, reports emerged that Santander UK might be put up for sale. According to the Financial Times, Banco Santander rejected an £11bn bid for its UK retail bank for being too low. More recently, NatWest Group reportedly approached Santander with a similar offer, which was also declined.

The cost-cutting extends beyond personnel changes, with the corporate and commercial bank's annual charity cricket day match, typically held in June, having been cancelled.

This restructuring follows previous job cuts, with Santander UK having eliminated approximately 2,000 positions last year. In March, the bank announced the closure of 95 of its 444 high street branches and reduced services at a further 50 locations, putting 750 jobs at risk.

Despite speculation about a potential sale, Santander's spokesperson emphasised: "As we have made clear, the UK is a core part of Santander's diversified business model and is not for sale."

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