UK bank CYBG to cut 330 jobs as part of Virgin Money merger

David Duffy-led bank closing offices but hopes to relocate roles where possible

Irishman David Duffy, CYBG’s chief executive: “We want to be open with colleagues and give them clarity on changes as soon as possible.” Photograph: Joanne O’Brien

Irishman David Duffy, CYBG’s chief executive: “We want to be open with colleagues and give them clarity on changes as soon as possible.” Photograph: Joanne O’Brien

 

Around 330 jobs are being axed at Clydesdale and Yorkshire Bank owner CYBG and a number of sites are closing following its £1.7 billion (€1.9 billion) takeover of Virgin Money.

CYBG, which is led by Irishman David Duffy, is closing three offices — in Edinburgh, Norwich and Leeds — but hopes to relocate roles where possible to other sites.

It said the job losses come as it looks to cut out “duplication” after the takeover of Virgin Money last October.

They will largely affect teams working across mortgages, brand and marketing, retail distribution, the chief operating office and risk.

It stressed the cuts are part of the 1,500 job losses announced after the Virgin Money deal, when it warned around 16 per cent of the combined workforce will go.

Trade union Unite said it was “deeply alarmed” by the scale of jobs lost. Unite national officer Rob MacGregor said: “The integration which is due to take place in October 2019 will clearly require some restructuring within the two existing businesses.

“Nonetheless, 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.”

Fired the starting gun

CYBG – which recently fired the starting gun on a group-wide rebrand to Virgin Money – is set to close Virgin Money’s St Andrew Square office in Edinburgh by the end of the year.

Staff will be relocating to CYBG’s existing office and branch in nearby George Street. Virgin Money’s flagship St Andrew Square lounge will also remain open for customers.

The group is expecting to shut Virgin Money’s Discovery House in Norwich by the end of October 2020. Yorkshire Bank’s Merrion Way office in Leeds is set to close by September 2021, with the group merging its functional corporate office into its flagship store and corporate office on Briggate in Leeds city centre.

Mr Duffy, the bank’s 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.” – PA