The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
North East; Northumberland and Tyne and Wear; Tyneside
Location of affected unit(s)
Newcastle
Sector
Financial Services Financial And Insurance Activities Financial Service Activities, Except Insurance And Pension Funding 64.19 - Other monetary intermediation
650 jobs Number of planned job losses
Announcement Date
8 June 2010
Employment effect (start)
Foreseen end date
31 December 2010
Description
Newcastle based nationalised bank Northern Rock is to cut 650 jobs by the end of 2010. This is on top of the 2000 positions already lost since 2008. It is also closing it's final salary pension, which stopped accepting new entrants in 1999. It is thought to be part of a plan to reduce overheads and costs to make the bank more appealing as it prepares to be sold back to the private sector; Virgin Money, National Australia Bank and Tesco have all expressed an interest.
Union Unite says these cuts to the company would be to the further detriment of the North West, which already has disproportionately high unemployment figures. Rob MacGregor, Unite national officer, said: "The decision by Northern Rock to cut over 20% of its workforce and alter the pensions of the remaining staff is devastating. Such massive changes represent a total reappraisal of the service the bank provides to its customers." Gar Hoffman, Northern Rock's Chief Executive, said the bank would work with local agencies to support those staff affected. No dates were given as to when the job losses would commence.
Sources
8 June 2010: BBC Website
8 June 2010: The Guardian
Citation
Eurofound (2010), Northern Rock, Internal restructuring in United Kingdom, factsheet number 70654, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/70654.
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