Clydesdale and Yorkshire Job Cuts: National Australia Bank Says 1,400 Positions To Go

Clydesdale and Yorkshire Banks To Cut 1,400 Jobs

The Clydesdale and Yorkshire banks are to cut more than 1,400 jobs in the UK, their owner has said.

National Australia Bank (NAB), which operates in the UK under the banner of Clydesdale and Yorkshire confirmed the jobs would go by 2015, following a strategic review which was announced in February.

The overhaul will shrink the size of its UK operation, which has 337 branches and a 8,300-strong workforce.

Clydesdale and Yorkshire will now focus primarily on Scotland and Northern England, NAB said, as it closes 29 of its Financial Solution Centres in southern England, as well as six back office locations.

NAB said the review was in response to "the deterioration in the economic and operating conditions" in the UK, particularly in the commercial property market.

Clydesdale and Yorkshire banks racked up a £25 million loss in the first half of the year, compared with a £77 million profit in the previous year, reflecting a higher charge on bad debts and higher funding costs.

NAB chief executive Cameron Clyne said: "In the last half-year there has been a significant downgrade in the growth prospects of the UK economy, in part reflecting the drag on its recovery from heightened weakness in the eurozone.

"This has contributed to the current downturn in the UK... and has led us to take these actions at this time."

Yorkshire Bank was founded in 1859 in Halifax, West Yorkshire, and has 185 retail branches, while Glasgow-based Clydesdale, which was bought by NAB in 1987, has 152 outlets.

Following consultation, the UK's workforce will be reduced to around 6,900.

NAB has been the subject of deal speculation over the last year after it was unsuccessful in the auction of 318 branches put up for sale by Royal Bank of Scotland, a deal later secured by Spanish giant Santander.

The Unite union has said that since the start of the financial crisis, Lloyds had cut 28,600 workers and RBS around 26,000.


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