More job losses at Northern Rock
In attempt to turn things around, Northern Rock has announced it s decision to cut another 650 jobs. The decision itself may not come as a surprise as such, as the troubled bank is continuously trying to reduce operating costs in an attempt to return to the private sector. Of course, in comparison, to RBS job cuts of 2,600, the number may seem less substantial, however, put into perspective, it may be more significant as it seems.
Since 2007, when Northern Rock was nationalised, the number of employees has been reduced considerably. At that time the company’s workforce amounted to 6000, which was reduced by almost 1,500 in 2008.
As Northern Rock mainly operates from its Newcastle and Sunderland based offices, most of job cuts are expected to be in the North East region.
Many members of staff were devastated to hear the news as they were working very hard for the past two years trying to aid the recovery of the lender. It is worrying indeed as it is not easy to find a suitable employment in the current market conditions, especially if the majority of job losses are expected to be in the same area.
Company enetered a 90 day consultation period as unions have condemned the decision.
One North East already promised help and support to Northern Rock’s redundant employees, including training and employment.