finance

Virgin Money to shed 400 jobs in latest round of banking cuts following CYBG merger



Around 400 jobs are to be lost in the latest stage of redundancies that followed the merger between Virgin Money and the owner of the Clydesdale and Yorkshire banks.

Around 200 jobs will be shed at Virgin Money’s offices in Glasgow, with 150 in its Gosforth offices and a further 50 at the former Yorkshire Bank office in Leeds. They are part of a reduction in staff announced by the bank when CYBG merged with Virgin Money two years ago.

In 2018, the bank said it would cut 1,500 jobs – about 16% of its workforce – as part of a rationalisation programme and the elimination of duplicated roles.

The bank had previously signalled 500 job losses earlier this year with a programme of branch closures and other cuts, though the programme was suspended at the start of the coronavirus outbreak and the job losses were later reduced to 300.

Lucy Dimes, chief strategy and transformation officer at Virgin Money UK, said: “We are committed to bringing our operations together under the Virgin Money brand to offer customers a sustainable business which is fit for the future.

“Decisions on jobs are never taken lightly, particularly in the more challenging environment brought about by the pandemic, and our focus is on minimising the impact on colleagues from the changes as much as we can.

“We will support all affected colleagues, helping them find alternative roles within the business and avoiding compulsory redundancies wherever possible.”

Virgin Money is bringing together its three banks under the Virgin brand and said the proposed changes would reduce operational costs and “deliver a significantly more efficient and sustainable business”.

The job cuts would take effect during the first few months of next year and Virgin Money said it hoped to achieve as many job losses as possible through natural turnover

The job losses are not linked to the coronavirus, which has sparked thousands of redundancies across the UK economy.

At the end of September, TSB proposed 300 job losses in Scotland as part of 900 UK-wide, with the closure of a third of its branch network, with 73 in Scotland being shut. It said the lockdown had accelerated moves toward digital banking.

Lloyds Bank is consulting on 865 job losses, while the Co-operative Bank (350 jobs) and NatWest (550) are also laying off staff.

In June, HSBC said it would be cutting 35,000 jobs worldwide, but did not say how many would be in the UK.



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