The job cuts are part of the integration process that will bring Clydesdale and Yorkshire Bank and Virgin Money entities under one brand
Virgin Money office in Leeds, West Yorkshire. (Credit: wikipedia.org/Mtaylor848.)
Virgin Money UK has announced nearly 400 job cuts across the group, as part of its ongoing programme to reduce operating costs.
The job cuts are also part of the next stage of integration process to bring Clydesdale and Yorkshire Bank and Virgin Money entities as a single business under the Virgin Money brand.
As announced previously, the integration process is expected to bring down operating costs, while improving efficiency. The reduction in costs also includes a decrease in headcount, Virgin Money said.
The integration process is also aimed at simplifying structures, reducing duplication and clarifying accountabilities. The result is that several roles will be removed as part of the removing redundancy.
The latest job cuts to take effect during the first few months of 2021
The latest job cuts are part of estimated workforce reduction of 16% across the combined group, which was previously announced in 2018.
According to Virgin Money UK, the reductions are anticipated to take effect during the first few months of next year.
Clydesdale’s former head office in Glasgow could see up to 200 jobs being lost, while 50 at former Yorkshire Bank’s head office in Leeds. Virgin Money’s office in Gosforth is also expected to a reduction of nearly 150 jobs, Sky News reported.
Virgin Money UK chief strategy & transformation officer Lucy Dimes said: “We are committed to bringing our operations together under the Virgin Money brand to offer customers a sustainable business which is fit for the future.
“Decisions on jobs are never taken lightly, particularly in the more challenging environment brought about by the pandemic, and our focus is on minimising the impact on colleagues from the changes as much as we can.
“We will support all affected colleagues, helping them find alternative roles within the business and avoiding compulsory redundancies wherever possible.”
In July, the bank announced that it resumed the integration and job cut process, after putting the process on hold due to the coronavirus (Covid-19) pandemic.