2,000 jobs to go at Northern Rock

18 March 2008

Northern Rock has announced a range of measures designed to transform its fortunes, although around 2,000 people will have to sacrifice their jobs in the process.

This number represents around a third of its current workforce and the culls will be made by 2011, the bank said.

In order to be able to repay the billions of dollars it was loaned by the Bank of England within the next four years, the bank says that jobs will have to go.

The British bank is also set to halve its assets down to around $113 billion by reducing mortgage lending.

Northern Rock is aiming to become a "smaller, more focused, financially viable mortgage and savings bank which will be returned to the private sector'', it said in a statement.

Ron Sandler, who has taken over the running of Northern Rock after it was nationalised last month, delivered his business plan to the European Union for approval.

Northern Rock has borrowed an estimated $50 billion from the Bank of England when the credit crunch struck.

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