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Group Operations Division Announces A Thousand Job Losses
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Date: 15th Mar 2006
The Bank has announced plans for a major programme of cost cutting within its Group Operations division, which LTU fears could eventually result in the loss of around a third of all jobs.
The business unit is aiming to slash operating costs by £121 million per annum by 2010 with plans for this year likely to result in up to one thousand job losses.
Senior Management’s announcement today means that within Group Operations this year:
* OFFSHORING. 450 roles will be offshored to India; 223 having been announced today and the others previously. Jobs are to be offshored from Andover, Newton Aycliffe, Sheldon and Brighton.
* RATIONALISATION. 462 further jobs will be lost through rationalisation, as senior management pursues its concept of ‘Lean Manufacturing’.
* CLOSURES. 214 staff work at sites - in Chorley, Newton Aycliffe and Glasgow - that are going to close; and a further 355 - in Tonbridge and London - will lose their jobs when their work is transferred elsewhere in the UK.
* RE-LOCATION. 389 staff will have to relocate to new offices: from Colmore Row in Birmingham, Castlemead in Bristol, Cambridge House in Brighton and Brown Street in Glasgow.
In other words, during the remainder of this year many Group Operations staff face the prospect of losing their jobs and many others can expect to have to move offices or change roles.
Senior Management has indicated that Offshoring to India and Outsourcing to other companies will feature heavily in its plans over the coming years. So far 9 processes have been identified for offshoring, with the Bank saying it is conducting feasibility studies on a further 11 processes that could also be offshored.
Group Operations has also made no secret of the fact that it intends to reduce the number of sites further; with many more site closures between now and the end of the decade being inevitable.
So even those Group Operations staff who ‘survive’ this year will have a very uncertain few years ahead of them!
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