The Clydesdale and Yorkshire banks plan to cut
1,400 jobs in the UK by 2015, it has been announced, following the
UK Strategic Review Outcome by National Australia Bank (NAB).
Results of the strategic review of NAB’s UK
operations, released on 30 April, have also revealed that
Clydesdale and Yorkshire banks plan to simplify their business
model to focus on retail operations and SME business lending across
Scotland and Northern England.
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Reduction of 1,400 roles is being planned by
September 2015 and the overhaul is expected to shrink the size of
the UK operation considerably, which has 337 branches and a
8,300-strong workforce.
On 7 February,
NAB CEO Cameron Clyne had said in a statement:
“NAB has commenced a strategic review, and
will work with UK management to appropriately reposition its
business mix and structure for the changed economic environment and
improve returns.”
According to NAB, post the strategic review,
the findings reveal that its UK operations has made a loss of
£25m ($40.7m) between July and December 2011, compared with a £77m
profit for the same year-ago period.
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By GlobalDataChief executive of National Australia Group
Europe, David Thorburn, said, that simplifying the business model
and focussing on the “strengths” in Scotland and the North of
England are “key to ensuring that Clydesdale and Yorkshire banks
deliver improved returns”.
“It is clear that we must adapt to the
exceptionally challenging economic environment we are operating in.
We have had to take some difficult decisions but they are the right
decisions for our business.”
NAB said it expects the restructuring to save
it approximately £74m a year by 2015.
NAB bought Clydesdale Bank in 1987, followed
by Yorkshire Bank in 1990. The banks’ operations were merged by NAB
in 2001, although the two names have been retained.
