680 jobs get axed at Northern Rock

28 March 2011

northern-rockNorthern Rock plans to cut 680 jobs by the end of the year to help reduce costs because they're really spectacularly awful at being a financial institution that makes money.

As such, they'll be on the phone to the union Unite and others to grin inanely while chewing their fingers to the quick while looking at ways of firing people or, as they prefer, 'restructure the business'.

These cuts will see the company with under 2,000 staff left on the books. Northern Rock employees are becoming rarer than griffin cutlets.

Chief executive, Ron Sandler, says: "In order to meet our agreed objectives, we must continue to manage our cost base, which is too big relative to the size of the company. Regrettably, this will involve job losses."

"Our aim is to minimise compulsory redundancies where possible and we will offer voluntary redundancy. This is an unsettling time for our employees, who have been through a lot in the last few years. We will keep them well informed throughout the process and provide support to those who are affected."

This comes on the back of the news from earlier in the month, which stated that Northern Rock reported an impressive £223.4 million net loss for 2010.

Sandler added: "Economic and trading conditions remain very challenging for a bank like Northern Rock. The mortgage market remains subdued, and the low interest rate environment continues to act as a headwind for banks and building societies primarily funded from retail savings."

He presumably then considered ending his life.

TOPICS:   Banking   Investments   Mortgages

3 comments

  • Sir l.
    You've got to admit it, their business strategy is fantastic. First buy collateralised or securitised debt (what ever it was called) at the top of the market, then wait for the crash, then split the bank into two (the good & bad banks). Sell off what you can at fire-sale prices, then put the rest in the "bad" bank to make totally sure the "good" bank has nothing left that might regain some value. Then you are free to downsize the bank to fit the size of the business you have left. Now I understand why I'm not bright enough to be a banker. I mistaking thought the point was to make money. I hear the bad bank is doing better than the good bank.
  • andy y.
    Bad bank= all the dross deals that will end up billed to the taxpayer. Good bank = the all the better quality mortgages that will end up underwater when the housing market eventually gives up the ghost. At least NRock is being a bit more honest about the mess left behind. RBS and Lloyds still in denial.
  • FF
    It's futile to continue castigating banks in this way. We need to focus on getting banks back into it's core business of financing growth.

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