Northern Rock announces up to 650 job losses

Nationalised British lender Northern Rock said today that it was planning to cut up to 650 jobs by the end of the year.

The firm has launched a consultation with trade union Unite over the latest cuts, which are aimed at reducing costs ahead of an eventual return to the private sector.

The lender would look to avoid compulsory job losses where possible but chief executive Gary Hoffman said it was “important that we continue to deliver value for taxpayers”.

He added: “There is still a challenging economic environment and, in order to meet our objectives, we must align our staffing level to match the smaller size of the business, increase efficiency and reduce our cost base.”