Northern Rock to cut nearly 700 more jobs



northern rock

northern rock

Nationalised bank, Northern Rock has announced that they will cut a further 680 jobs across the business as they go through their latest business restructure.

The lender explained that the cuts would affect all grades of the business, and wouldn’t be localised.

They blamed “very challenging” market conditions, which have been caused by a subdued mortgage market.

The company reported a 2010 loss of £232.4million, but claimed they were still making progress.

Ron Sandler, Chairman of the group explained, “In order to meet our agreed objectives, we must continue to manage our cost base, which is too big relative to the size of the company – regrettably, this will involve job losses.”

“Our aim is to minimise compulsory redundancies where possible and we will offer voluntary redundancy.”

When Northern Rock ran into difficulties in 2008, the government stepped in to stabilise the bank, and split it into two parts.

 

The bank was split with the good assets, which included new mortgages and savers deposits forming Northern Rock PLC, and the bad assets, which included the banks unsecured loans and old mortgages forming Northern Rock Asset Management.

The government still plan to sell off Northern Rock PLC, in a bid to get back most of the money they spent bailing out the bank in the crisis. Northern Rock at that point employed around 6,500 staff.

Last year that figure was down to 4,500 and after the latest cuts will drop to below 2,000.

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