Northern Rock to cut 1,300 jobs

Jul 30 2008

TROUBLED mortgage lender Northern Rock is to cut 1,300 jobs - 800 of them compulsory.

The cuts relate to previously-announced plans by the nationalised Newcastle-based business to cut 2,000 staff by 2011.

The majority of the job losses will come this year. The remaining headcount reductions will occur through natural staff turnover, the company said.

The group is a major employer in the North East of England and is working with local development agency One NorthEast to help as many as possible to find new jobs.

The company’s executive chairman Ron Sandler said: “Confirming job losses is never easy but our staff have been kept well informed and the need to contract the size of the company is well understood.

“This remains a very tough time for our staff but the restructure of the company is nearing completion and we are now in the final phase of this difficult process.”

Today’s job cuts come under a restructuring plan for the business first announced in March, which involves cutting back the size of its mortgage business and boosting savings deposits.