Spain's Banco Santander SA will cut around 200 jobs at its British unit in an overhaul of its operating structure.

The layoffs will affect Santander UK Group Holdings PLC's corporate and commercial bank arm, the bank said in a statement emailed to S&P Global Market Intelligence, adding that it has started consulting affected employees about the move. The division's head, Tim Hinton, also noted that the bank's priority is to transfer staff to other job vacancies.

Santander recently unveiled plans to ramp up its digital banking efforts, earmarking €20 billion for the push. In May, Spanish labor union Comisiones Obreras said the bank plans to close 1,150 branches and cut more than 3,700 jobs in Spain. However, a union representing Santander employees said recently that the Spanish lender now plans to cut 6.7% fewer jobs than initially expected.