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Dr Kenneth Noisewater

Northern Rock to cut third of workforce

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Northern Rock to cut 2,000 jobs

 

Northern Rock has said it will cut about 2,000 jobs and reduce its residential mortgage lending by half.

 

The job cuts, which account for about a third of its staff, will be made by 2011 under plans to turn around the ailing bank's fortunes.

 

The Newcastle bank was nationalised in February after the credit crisis forced it to seek a Bank of England lifeline, to fund its mortgage loan book.

 

Northern Rock must pay back the Bank of England loans worth about £25bn.

 

The bank needs European regulators to approve its rescue plan, and the EU Commission has began examining details of Northern Rock's proposals.

 

Under EU rules, public support can be allowed to stop firms from going bankrupt, but long-term government aid that is seen to undermine competition is not allowed.

 

EU spokesman Ton van Lierop said: "To be viable without state guarantees it is clear that Northern Rock must shrink... Fair competition must be ensured between all banks."

 

The Commission has already had formal complaints from Danish banks alleging unfair competition in the European banking sector following the aid given to Northern Rock.

 

'Sustainable business'

 

Northern Rock is one of the biggest employers in the North East, with about 6,500 staff.

 

A task force, the Northern Rock Response Group, has been established to help those affected find new employment.

 

Regional development agency One NorthEast is leading the response group, under the agency's chief executive, Alan Clarke.

 

Mr Clarke said the news was a "setback" for the regional economy and, in particular, the loyal and dedicated Northern Rock workforce.

 

But he added: "All the evidence shows that there is strong demand in the North East for the skills that many of Northern Rock workers possess and the vacancies are there to retain as many of these skilled workers in our region as possible."

 

The Unite union said it would oppose any plans for compulsory redundancies at Northern Rock. It is seeking assurances that the workforce will be reduced through purely voluntary means.

 

"The union will be working to mitigate the implications of the recent crisis on the employees, who have been working tirelessly to ensure there is a sustainable business in the future," said Graham Goddard, Unite deputy general secretary.

 

"Unite will now be pressing the company for the detailed plans and will oppose any plans for compulsory redundancies."

 

The UK Shareholders Association (UKSA) is to announce legal action by Northern Rock shareholders on Wednesday who want "fair recompense" for the compulsory purchase of their shares by the government.

:(

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Guest Stevie

I hope you don't lose your job Gemmill, and two of my mates who have quite senior positions there, but this couldn't have happened to a nicer company, nobheads.

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Guest alex
I hope you don't lose your job Gemmill, and two of my mates who have quite senior positions there, but this couldn't have happened to a nicer company, nobheads.

Not had much to do with them although I had a mortgage with them when I used to have my flat but they seem like a pretty benevolent organisation to me. Biggest charitable donors in the North East iirc.

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I hope you don't lose your job Gemmill, and two of my mates who have quite senior positions there, but this couldn't have happened to a nicer company, nobheads.

Not had much to do with them although I had a mortgage with them when I used to have my flat but they seem like a pretty benevolent organisation to me. Biggest charitable donors in the North East iirc.

 

 

We might be a home for old crocks, but I never realised we'd registered as a charidee.

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Biggest charitable donors in the North East iirc.

That's how they should have spun the whole "offering 125% mortgages to people with dodgy credit histories and properties worth 7x their annual income" thing IYAM.

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Guest Stevie
I hope you don't lose your job Gemmill, and two of my mates who have quite senior positions there, but this couldn't have happened to a nicer company, nobheads.

I worked for them briefly in my youth and I hated my bosses, one fat old cow of a woman in particular, and a lot of the staff there, I seriously looked in to doing a Timothy McVeigh.

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Nice.

 

I take it from that concise response you might well be one of those in the firing line?

 

Hope not for your sake :(

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Nice.

 

I take it from that concise response you might well be one of those in the firing line?

 

Hope not for your sake :rolleyes:

 

 

Same here, just having a pop as I don't get the chance much lately :(

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I hope you don't lose your job Gemmill, and two of my mates who have quite senior positions there, but this couldn't have happened to a nicer company, nobheads.

I worked for them briefly in my youth and I hated my bosses, one fat old cow of a woman in particular, and a lot of the staff there, I seriously looked in to doing a Timothy McVeigh.

:(

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Nice.

 

I take it from that concise response you might well be one of those in the firing line?

 

Hope not for your sake :rolleyes:

 

This. :(

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ive worked at NR for 3 years now. Think ill take redundancy when its offered in Arpil/May should get 6k so im happy with that. Started looking elsewhere for a job already

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Nice.

 

I take it from that concise response you might well be one of those in the firing line?

 

Hope not for your sake :razz:

 

Nah, no one knows yet - I guess everyone's in the firing line until we hear for definite. Not too worried either way tbh. Cheers though.

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2000 people in 3 years isn't good but its not disastrous either - they probably "churn" several hundred in a normal year so a hiring freeze will probably get them there without too many forced redundancies

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Nice.

 

I take it from that concise response you might well be one of those in the firing line?

 

Hope not for your sake :icon_lol:

 

Nah, no one knows yet - I guess everyone's in the firing line until we hear for definite. Not too worried either way tbh. Cheers though.

 

You'll land on yer feet Gemma whatever happens. :razz:

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Guest BigThompers
Nice.

 

I take it from that concise response you might well be one of those in the firing line?

 

Hope not for your sake :icon_lol:

 

Nah, no one knows yet - I guess everyone's in the firing line until we hear for definite. Not too worried either way tbh. Cheers though.

 

You'll land on yer feet Gemma whatever happens. :razz:

 

You'll be hoping he lands on all-fours, yes?

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