North­ern Rock axes an­other 650 jobs

Daily Mail - - City & Finance -

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).’

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