Elements of Alliance & Leicester’s retail and commercial
banking divisions, including some asset finance teams, have been
offered voluntary redundancy.
New technology, a decline in customer demand and costcuttings
are some of the main reasons for the scheme.
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Between 200 and 300 people,out of the group’s 8,000 staff
count,are expected to take part in the scheme.
“The voluntary redundancy scheme was launched because
changing business priorities mean that, overall,we expect to need a
slightly lower number of staff,” a spokesman for the bank said.
He added that the scheme is being applied to those
divisions that will reportedly be “less busy than others this
year”.
Originally introduced in February 2008 for its back-office
areas in Bootle, Wigan, Liverpool and Leicester, in recent weeks
the offer was extended to areas in the retail banking and, more
predominantly, in the commercial banking sector, including staff at
the Manchester site.
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By GlobalData Although the spokesman said he could not confirm the
number of people who had applied for or taken a voluntary
redundancy, other reports allege that up to 300 back-office staff
had been cut.
“We can’t confirm figures as yet…we have had a number of
people apply, but it’s not the end of the scheme yet and these
things take time. When people apply, they have discussions with
their managers and HR about options,” the spokesperson said.
“It is important to remember these are not redundancies;
people are applying to leave the group. It offers the option of
leaving to staff, who can then decide if leaving at this time,with
a lump sum,benefits their own career, family or other plans.”
Application for voluntary redundancy does not guarantee
acceptance.
The initial launch of the scheme was in response to a
“transformation programme, which saw improved and more efficient
back-office technology and processes. It was then widened to
the….commercial banking division following a number of staff asking
for their division to also be included in the scheme”, the
spokesperson added.
Customer service levels for the divisions under review
will not be affected, the bank said.
The scheme takes place against the backdrop of a fall, by
almost one-third, in A&L’s core operating profits,as well as
tightened liquidity generally.“We expect new lending volumes to be
lower than in recent years,” the spokesperson said.
