Northern Rock plc is to make 680 job losses as part of a business restructure.
It says it has entered into a formal consultation with Unite, the trade union, and other employee representatives on the further restructuring of the business.
The job losses will be across all levels and the process will conclude by the end of the year. The bank says it will offer voluntary redundancies where possible and will offer support to staff affected by the job cuts.
In its full year results for 2010, the company reported losses of £232m and said keeping control of costs would be a key focus for the year.
In January 2010, the bank was split into two parts, a “good” and “bad” bank, or Northern Rock plc and Northern Rock Asset Management respectively.
Executive chairman Ron Sandler says: “Economic and trading conditions remain very challenging for a bank like Northern Rock; the mortgage market remains subdued, and the low interest rate environment continues to act as a headwind for banks and building societies primarily funded from retail savings.
“In order to meet our agreed objectives, we must continue to manage our cost base, which is too big relative to the size of the Company – regrettably, this will involve job losses.”