CYBG announces 330 job losses | Gladstone Brookes

CYBG announces 330 job losses

CYBG announces 330 job losses

Clydesdale Yorkshire Bank (CYBG) has announced 330 redundancies as a direct result of its £1.7 billion merger with Virgin Money last year.

When the bank took over Virgin Money in October last year it re-branded both the Clydesdale and Yorkshire operations, plus its app-based B, with the Virgin Money name.

Merges

Now, almost exactly a year later, it has announced the redundancies across the country as it merges its operations.

Operating centres in Edinburgh, Leeds and Norwich will close jobs will also go in three other divisions – brand, marketing and retail distribution.

First stage?

It is believed this could be just the first stage of the lenders job cutting programme as Clydesdale announced at the time of the takeover that it expected 1,500 jobs to go by the end of 2021 from a combined workforce of 9,600.

In a statement it said the changes were ‘designed to simplify structures, reduce duplication and clarify accountabilities across business areas’.

It added that, while it would maintain a ‘strong presence’ in Edinburgh, Leeds and Norwich, its ‘key corporate locations’ would be Glasgow and Newcastle, maintaining the strong links with the former Northern Rock Bank which Virgin took over in January 2012.

David Duffy, CYBG chief executive, said: “The consolidation of our operating centres supports our goal to create a more streamlined and efficient business – focusing on two key operational centres in Glasgow and Newcastle, supported by teams based in Leeds, Edinburgh, Chester and London. “We recognise that some exit dates are quite far in the future, however, we want to be open with colleagues and give them clarity on changes as soon as possible.

They are our key priority and we will support them through this change with as much choice and flexibility as possible.”

Alarm

Unite Union national officer Rob MacGregor expressed alarm at the scale of the losses.

He said: “Unite is deeply alarmed that as CYBG and Virgin Money approach formal integration the business has decided to cut 330 roles and close a number of sites.

Shock

“The integration which is due to take place in October 2019 will clearly require some restructuring within the two existing businesses.

The scale of job losses and site closures announced today will come as a shock to colleagues.

“The personal cost of these plans will be major for staff. Unite is concerned that there are likely be further job losses.

Workplace representatives will be supporting members over the coming days and weeks across the sites.”

“CYBG is one of the banks caught up in the PPI scandal and has already set aside more than £3 billion to pay compensation for successful claims.

It is understood they intend to increase that amount by a further £450 million because of the massive increase in claims it received just before the claims deadline.”

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