Clydesdale Bank owner CYBG plans to shed 330 jobs

CYBG plans to rebrand its entire business as Virgin Money

Banking group CYBG has announced plans to cut about 330 jobs in the wake of its takeover of Virgin Money.

The Clydesdale and Yorkshire Bank owner will close three operating centres in Edinburgh, Norwich and Leeds.

Jobs will also be shed from a number of divisions, including brand and marketing and retail distribution.

The announcement comes just weeks before the group is due to formally complete its integration with Virgin Money.

CYBG forecast at the time of the Virgin Money takeover last year that a total of 1,500 jobs would go by the end of 2021. The combined group currently has about 9,500 staff.

In a statement on Tuesday, it said the changes were "designed to simplify structures, reduce duplication and clarify accountabilities across business areas".

It added that it would maintain a "strong presence" in Edinburgh, Leeds and Norwich, but focus its "key corporate locations" in Glasgow and Newcastle.

Office closures

• Virgin Money's St Andrew Square office in Edinburgh is expected to close by the end of this year. A "significant" proportion of the 100 staff based there will be relocated to another site in the city.

• Virgin Money's Discovery House in Norwich is expected to close by the end of October 2020, with roles transferring to other locations. Less than 50 of the 150 staff currently employed there are expected to lose their jobs.

• Yorkshire Bank's Merrion Way office in Leeds is expected to close by September 2021, with the group moving its functional corporate office to another site in the city.

CYBG chief executive David Duffy 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."

He added: "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."

Clydesdale Bank is part of the CYBG Group

The Unite union said it was "deeply alarmed" by CYBG's announcement.

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."

CYBG plc plans to change its name to Virgin Money UK plc in late 2019 - with the entire business, including the Clydesdale and Yorkshire banks, expected to be using the Virgin Money brand by the end of 2021.

CYBG said the rebranding timetable was subject to regulatory approval for switching to a single banking licence, which is expected late next month.