Northern Rock plans to cut 650 jobs by the end of the year as part of its ongoing restructuring process.
The company has entered a 90-day consultation period with the union Unite and other employee representatives. Company representatives say the proposed restructuring will involve jobs at all grades, and a voluntary redundancy scheme will also be implemented. The overall process is expected to conclude at the end of the year.
Company representatives say the cuts are being made to align the number of employees to the smaller size of the business, in preparation for its return to the private sector.
Northern Rock cut 1,300 jobs in 2008, and also cut jobs in 2007. Northern Rock Asset Management plc previously revealed losses of £257.5m in 2009 and £1.36bn in 2008.