Northern Rock job losses reduced to 1,300

by Gill Montia

Story link: Northern Rock job losses reduced to 1,300

Northern Rock has announced that job cuts at the nationalised lender will be lower than expected.

The bank, which has undertaken a radical restructure since its collapse last September, says it expects to make about 1,300 staff redundant.

Not all will be compulsory redundancies as around 500 members of staff are opting to leave voluntarily.

The lender had previously estimated that it would cut up to 2,000 staff by 2011 but its chairman, Ron Sandler, has confirmed that the restructure is close to completion and around 4,000 staff will remain.

At the time it was rescued by the Government, Northern Rock owed the Bank of England £24 billion.

It has been successful in keeping to its repayment schedule but has been forced to substantially reduce its loan book and has offloaded borrowers who needed to remortgage.