Shock as dozens of jobs set to go at financial services company

Aug 6 2008 by David Jones, Liverpool Daily Post

A FINANCIAL services company near Chester says it may have to cut more than 50 jobs as a result of the credit crunch.

Moneysupermarket.com Group says it is nearing the end of a consultation process that may result in a reduction of approximately 54 jobs, predominantly in its Mortgage 2000 business.

The group, based on St David’s Business Park, Deeside, says a cut of that size would represent an 8% reduction in its workforce of around 675.

News of the cutback comes as a shock because moneysuper- market.com has been one of the star performers in the regional economy over the past few years.

But the group said that, in common with most other businesses that operate in the intermediary mortgage market, the tightening credit market has hit Mortgage 2000, the group business that specialises in providing intermediary mortgage services.

Stuart Glendinning, managing director of moneysupermarket.com, said: “We recognise this is a difficult time for everybody at moneysupermarket.com and we will support staff through this process.

“Our intermediary business isn’t immune from the effects of the current market conditions, especially in the mortgage and loans market. However, we remain confident in the group’s growth prospects.”

Mortgage 2000 staff are based at housebuilder Redrow’s nearby offices on St David’s Park. A decision on how many jobs are to be lost could be made next week.

Moneysupermarket.com, which also has staff working out of a unit at Hawarden, has been looking at relocating to a new site big enough to accommodate all its staff. Sites in both Cheshire and north east Wales are being evaluated.

Company spokesman Tim Newhouse said yesterday that the group would probably reach a decision on that by the end of the year. The company operates under its flagship moneysupermarket.com and travelsupermarket.com brands which allow consumers to compare prices for mortgages, loans, credit cards and package holidays and click through to a provider if they want to make a purchase.

Last month, shares in the company lost about a third of their value after it issued a trading statement warning that revenues would be down by £7m following the withdrawal of Barclays-owned Firstplus from the home loans sector.

davidrjones