According to the lender, which was nationalized in February 2008, the job losses are necessary as part of a cost-cutting exercise and would affect employees at all grades across the company.
Less than 2,000 people will work for the bank following the latest job cut – compared to a workforce of 6,500 prior to its bailout in 2008.
The bank has already made about 2,000 redundancies and moved 1,250 staff to Northern Rock Asset Management, the legacy loan book that was merged with Bradford & Bingley last year.
The nationalized bank has entered formal consultation with Unite, the union, and other employee representatives, on further restructuring of the business.
In its full year results for 2010, the company reported that it remained loss making and that, following the separation of Northern Rock plc from Northern Rock (Asset Management) plc, the company had entered 2011 with a high retained cost base.
The results also highlighted that cost management would remain a key area of focus in 2011, as the company continues on its path to profitability and prepares for a return to the private sector.
