| Clydesdale owner cuts 1400 jobs as financial solutions centres axed Clydesdale Bank's Australian owner announced earlier today it was drastically scaling back its operations in England in a move that would account for the bulk of 1,400 job cuts across the group, Most of the cuts will affect southern England Only 60 jobs expected to be lost in Scotland Banks' owner blames downgrade in UK growth National Australia Bank will shut 29 of its 73 "financial solutions centres", mostly in the south, following a wide-ranging review of its Clydesdale and Yorkshire bank operations which will save £74 million a year. The bank said the UK network of 337 branches will be retained as its focus switches to retail and small business banking. NAB announced the changes alongside a £25m loss in its United Kingdom division for the six months to the end of March, compared with a £77m profit in the previous year, reflecting a higher charge on bad debts and higher funding costs. The bulk of the job losses - 670 - can come from the closure of the financial services centres in the south, while 300 jobs are set to go in Yorkshire, on top of 200 that have already been announced. There was a £141m write-down to the value of the United Kingdom division and an additional £120m set aside to cover mis-sold payment protection insurance. The jobs cull is equal to 17 per cent of the workforce and the changes are aimed at stablising NAB's UK business. Andy Willox, Scottish policy convener for the Federation of Small Businesses, expressed concern on the impact of the change on his members. Scotland will be spared the worst in the restructuring, with about 60 jobs being axed and four financial solutions centres, offering business advice, closing. "Growth through acquisition in the United Kingdom isn't an attractive option and one I am prepared to rule out," he said. ". Of six back office locations to be closed, four have already been announced - Leeds, London and two in Glasgow. "While I'm unhappy with returns currently being generated by the UK, I'm confident the strategy we've outlined puts Clydesdale Bank on a path to more acceptable returns with lower risk. The UK division's balance sheet will be strengthened, reducing its reliance on wholesale funding which had become more expensive due to credit agency downgrades. It was the first time he had publicly admitted that he would be prepared to sell the United Kingdom banks. Any change to the banking services which Clydesdale Bank provides might have a significant impact on the wider Scottish economy. Clydesdale owner cuts 1400 jobs as financial solutions centres axed |
Wednesday, 2 May 2012
Clydesdale owner cuts 1400 jobs as financial solutions centres axed
