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The workforce will be reduced by a third
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Northern Rock Shed 2000 Staff
Writes Dan Drage dan.drage@consumerchoices.co.uk
Nationalised high street lender Northern Rock announced plans to shed a third of its operating staff today.
2000 of the 6500 strong workforce will be made redundant over the next six months as the company prepares to reduce costs and return to private ownership.
Northern Rock (www.northernrock.co.uk) will open discussions with unions about the proposed cuts, which will be completed by 2011 though the company said most jobs will go in 2008 ‘across all levels of staff’.
Ron Sandler, Executive Chairman at Northern Rock, had the following to say:
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"Those who are affected will be offered as much support as possible"
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‘In order to meet our previously stated corporate objectives, it is necessary for us to contract to a smaller and more sustainable business’
He continues:
‘Regrettably, this is likely to involve a reduction in current staffing levels of around 2000 and a restructuring of the company. Those who are affected will be offered as much support as possible’
Former Northern Rock chief Adam Applegarth received a £750,000 severance when his contract was terminated last December. Mr. Applegarth will additionally be entitled to draw on a pension of £2.5 million according to company records.
Chris Eagle, Commercial Manager at Credit Choices, has the following advice for Northern Rock mortgage holders:
‘If your Northern Rock mortgage is coming up for renewal, shop around and try to find a better deal. The mortgage market has significantly narrowed over the last few months, but Northern Rock has one of the highest standard variables on the market. RBS (www.rbs.co.uk) today cut mortgage rates to attract new borrowers, and their rates are now among the most competitive.’
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