Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Economics, government & businessLatest NewsJob creation and lossesPay & benefitsPensions

Northern Rock to cut 650 jobs and close final salary pension scheme

by Personnel Today 9 Jun 2010
by Personnel Today 9 Jun 2010

Northern Rock will cut 650 jobs and close its final salary pension scheme.

More than 2,000 jobs have already been lost at the bank since it was nationalised two years ago.

The job cuts are thought to be a way of reducing overheads and costs, making Northern Rock more attractive to prospective buyers, the Guardian has reported.

The closure of the bank’s final salary pension scheme means existing members will be switched to a money-purchase scheme.

But Unite union has criticised the move as “short-termist” and called for political intervention “to prevent this business being dramatically scaled back and prepared for sale”.

Union sources said the number of proposed job losses could reach nearly 1,000 if part-time and casual staff were included.

Rob MacGregor, Unite’s 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.”

Gary Hoffman, Northern Rock’s chief executive, said: “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.

“We remain in public ownership and it is important that we continue to deliver value for taxpayers.”

The taxpayer currently has a £1.4bn stake in Northern Rock, which is viewed as the good part of the business, but the Treasury has lent the bank about £22bn, much of which will be paid off over the next 20 years as mortgages are redeemed by existing customers.

Avatar
Personnel Today

previous post
Public sector pensions and benefits earmarked for cuts
next post
Failing universities should be closed to free up money for better institutions, says CBI chief

You may also like

Police Scotland pays out £948,000 to female officer...

16 May 2022

Gender equality facing growing backlash from male managers

16 May 2022

Lack of flexibility pushes half of women to...

16 May 2022

How firms need to comply with sponsor licence...

16 May 2022

easyJet joins battle for cabin crew with £1,000...

16 May 2022

Ethnicity pay gaps: Not making reporting mandatory is...

16 May 2022

MP demands timeline on carer’s leave legislation

13 May 2022

Employment tribunal: use of word ‘bald’ can amount...

13 May 2022

Rees-Mogg under fire from civil service leader over...

13 May 2022

Prime minister steps up calls for 90,000 civil...

13 May 2022
  • What it really means to be mentally fit PROMOTED | What is mental fitness...Read more
  • How music can help to ease anxiety at work PROMOTED | A lot has happened since March 2020, hasn’t it?...Read more
  • Why now is the time to plug the unhealthy gap PROMOTED | We’ve all heard the term ‘health is wealth’...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+