» Bradford & Bingley announce huge job losses

B&B's shares dive

Article Published: 25th September 2008

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Bradford & Bingley saw its shares slump to an all time low by 8 per cent to 23p as it announced it was selling off assets at a loss of £134 million. B&B was a major lender to landlords looking for buy to let mortgages.

The bank has announced it will be getting rid of 370 staff with 300 going at its processing centre in Hertfordshire in the first quarter of 2009. Staff at its Yorkshire head office will need to wait until later to learn their fate. In its branches around the UK, roughly 50 mortgage advisors and sales staff will lose their jobs. Staffing levels in the arrears collection departments will be increasing as the bank steps up chasing clients with mortgage arrears. The total annual saving to the company once they have shed their staff load will be £15million.

Bradford & Bingley has seen its credit rating downgraded to almost “junk” status which means it would be almost impossible for it to carry out its usual banking business including taking money.

The new chief executive Richard Pym said “The changes we have announced today focus the business as a strong savings bank, reduce the size of our activities and increase our capacity in arrears collection”.