UK-based challenger bank Virgin Money announced that it is resuming the previously announced job cuts and branch closure process, as it was put on hold due the coronavirus (Covid-19) pandemic.
The restructuring process is part of the Group’s integration programme and moves towards a single Virgin Money brand across the business.
In February, the bank had announced the closure of 22 branches due to their lower usage and 30 branches will be consolidated into the nearby Clydesdale Bank, Yorkshire Bank and Virgin Money locations. Under the programme about 500 job cuts were expected.
But in March, the bank stated that the plans had been put on hold in response to the lockdown announced by the UK Government to contain the Covid-19 pandemic.
It has now resumed the programme, under which the number of branch closures has not changed, but the number of job cuts has been reduced.
Virgin Money has announced a reduction of about 300 roles across the group, representing about 200 fewer role reductions compared to the original announcement in February.
The reduced job cuts are due to the organisational changes made in response to the pandemic, it said.
The rebranding, consolidation and closure of branches is scheduled to begin in August this year.
Virgin Money initiates measures for customers and employees impacted by the decision
Virgin Money, in response to the pandemic has announced measures to support customers and employees impacted by the decision.
It said that the branches will proactively engage with potentially vulnerable customers to discuss alternative options to provide banking services. Its employees will visit the local Post Office or closest branch with customers where requested.
The bank’s ‘Digital Buddies’ will now focus on impacted branches to help customers with mobile and internet banking.
The measures also include providing additional access-to-cash services through Post Office Now and Travelex.
The employees, who would have lost their jobs, will be offered an option to be retained until October 20, to offer support to vulnerable customers.
Virgin Money UK Group Business Transformation Officer Lucy Dimes said: “While the decision to recommence these redundancies and branch closures has not been taken lightly, we are committed to integrating Virgin Money under one brand as a sustainable, innovative business that invests in improving its customer offer for the future.
“The measures we’ve put in place during the lockdown will continue to help customers engage with alternative and improved ways of banking with us.”
