A formal 90-day consultation period has begun
UK-based Newcastle Building Society has announced that it is set to make up to 150 redundancies as a result of continued unprecedented market conditions.
According to the society, the decision has been made to manage costs in order to maintain its position in light of expected difficult trading conditions in 2009 where residential lending is predicted to operate at a lower level than in previous years and commercial lending activities will be wound down.
The society has reviewed its resource requirements to service third party contracts in its strategic solutions division which provides outsourced services to other institutions and has concluded that, due to a combination of the demise of the former Icelandic internet bank Icesave, and forecast business levels for 2009, current staffing in this area cannot currently be supported.
A formal 90-day consultation period has begun and the society will be working closely with both staff and the union, Unite, throughout the process.
While the redundancies will be in most areas of the business, the majority will be in the society’s head offices in Newcastle City centre and Cobalt Business Park. No branch closures will occur as a result of this announcement, said Newcastle.
Colin Seccombe, CEO of Newcastle Building Society, said: After creating some 200 new jobs through 2008, we are extremely disappointed to have to make these redundancies, which are a direct result of the unprecedented downturn in the financial markets that we, and most other financial institutions, are experiencing.