National Australia Bank (NAB) has announced 1,400 job cuts at its UK division, which is made up of Yorkshire and Clydesdale banks, in an effort to save £74 million a year by 2015.
IT jobs have not been ruled out of the redundancies, as the company revealed its plan to close six back office locations in the UK.
“UK banking will also reduce its cost base by streamlining operations, technology and support functions to improve efficiency and effectiveness,” said NAB in a strategic review statement today.
The job losses will take place between now and the end of September 2015. A 90-day consultation with trade unions will begin shortly.
David Fleming, national officer at Unite the union, said: “1,400 job cuts across the UK, just days after the news that HSBC is slashing over 3,000 staff means the financial services sector is facing some of the darkest days of uncertainty.
“Unite will be supporting our members in opposing all of these job cuts and challenging management on how they have treated their staff.”
Cameron Clyne, National Australia Bank Group CEO, said that the restructuring was carried out due to the economic conditions in the UK. The UK was last week confirmed to be in a ‘double dip’ recession.
“The action we are taking is needed to adapt to this current economic environment in the UK, and to reposition the UK banking business to improve returns for the group over the medium term,” he said.
Yorkshire and Clydesdale banks have suffered numerous IT glitches since March, which have caused its customers difficulty with using their debit cards to make payments and withdraw cash.
Problems first started when the banks transferred its systems operations to external contractor First Data last month.