Northern Rock axes another 650 jobs
NORTHERN Rock is cutting 650 jobs, some 14pc of its workforce, as the nationalised bank tries to move back into the black.
The move will reduce the total number of employees working for the Rock to 3,850, compared with 6,000 before it went into meltdown.
Though the cuts are being made at the ‘good’ bank, Northern Rock plc, the same employees also serve the Rock’s ‘bad bank’ asset management arm which is being run down.
Chief executive Gary Hoffman said: ‘It is important that we continue to deliver value for taxpayers.’
He pointed out that the Rock is selling just one-fifth of the level of mortgages that it did at its peak.
The bank also plans to close its final salary pension scheme to new contributions from existing members, which will hit 850 staff.
Union Unite said: ‘It is unacceptable that we are now seeing rash decisions based on a short-term management strategy in order to make Northern Rock appear more attractive (for sale).’