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Northern Rock cuts 680 jobs

Northern Rock is cutting up to 680 jobs as it continues its restructure ahead of a sale.

Posts across all levels are up for review, although compulsory redundancies will be kept to a minimum.

The bank, which is struggling with the subdued mortgage market and low interest rates, needs to reduce costs having posted a £242.4 million loss for 2010.

According to a BBC report, the lender employed 4,500 people when it emerged from a good bank/bad bank split last year and the latest cull will leave staff numbers below 2,000.

Since its rescue by the taxpayer in 2007, Northern Rock has been reduced a small bank dependent on retail funding, and while plans to return it to private ownership are in hand, it is unlikely that a buyer will emerge before the UK’s regulatory environment is more settled.

Comments (1)

One Response to Northern Rock cuts 680 jobs

  1. BreakingWind says:

    I trust the CEO is among the first to go – the country cannot afford him.
    Clearly, he should forfeit his last 3 years salary and bonuses…!!!

    I’ve never been more serious in my life. It’s the kind of thing Britain MUST do if it really wants to put an end to bank disasters. Just do it and we’ll see such a public humbling of such guys – Uriah Heap will seem like the last of the straight talkers, forever more…!!!

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