North East challenger bank Virgin Money says it is resuming its bank closure and job loss plans which were put on hold at the start of the coronavirus crisis.
The Newcastle headquartered bank had previously announced plans to cut 500 jobs and close or merge 52 branches across the country, but the programme was suspended as it dealt with the Covid-19 outbreak.
Now the firm will restart its shake-up in August – but said the immediate job cuts are 200 fewer than those previously announced, due to changes made in response to the panedemic.
It will also offer staff affected by branch closures the option to remain with the group until October 20, to help offer support to vulnerable customers.
Virgin Money will shut 22 branches and merge 30 more into nearby sites, as well as rebranding all Clydesdale Bank and Yorkshire Bank branches under the Virgin Money banner.
It is aiming to have all branches rebranded by the end of January next year.
Lucy Dimes, group business transformation officer at Virgin Money 海角视频, said: “While the decision to recommence these redundancies and branch closures has not been taken lightly, we are committed to integrating Virgin Money under one brand as a sustainable, innovative business that invests in improving its customer offer for the future.
“The measures we’ve put in place during the lockdown will continue, to help customers engage with alternative and improved ways of banking with us.”
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In its update on the plans, Virgin Money said it had been able to reduce the number of head office roles being cut due to more staff working from home, while it is also keeping more business banking contact centre employees to help small firms amid the crisis.
Virgin Money has confirmed that up to 50 jobs will be affected at the Newcastle head office, instead of the planned 60.
It is sticking to overall aims to slash around 16% of its combined workforce - some 1,500 jobs - following CYBG’s £1.7 billion takeover of Virgin Money in 2018.
In May Virgin Money revealed underlying profits have more than halved after taking a £232m hit.
On a statutory basis, the group swung to a £7m interim loss from profits of £9m a year ago.
Its total charges included £164m set aside for Covid-19 related impairments amid expectations for rising bad debts as customers default on loans.
Meanwhile, HSBC also recently lifted the freeze on its redundancy programme to cut around 35,000 jobs worldwide.
A number of banks had paused redundancy plans amid the crisis, with Lloyds Banking Group also among those to temporarily halt job cuts.