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Virgin Money to cut 400 jobs to minimise costs amidst the COVID-19 crisis

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  • Virgin Money to cut 400 jobs to minimise costs amidst the COVID-19 crisis.
  • The UK firm names Enda Johnson as its interim Chief Financial Officer.
  • Virgin Money laid off 300 workers and closed 52 of its branches in July.

Virgin Money UK plc (LON: VMUK) said on Wednesday that it plans on slashing its workforce by roughly 400 jobs to cut costs amidst the Coronavirus pandemic that has so far infected more than 500 thousand people in the United Kingdom and caused over 42 thousand deaths.

The British lender had originally decided not to proceed with restructuring plans earlier this year in March. In July, however, it was pushed into resuming branch closures and job cuts to combat the economic crisis. Virgin Money named its Corporate Development Director, Enda Johnson, as its interim Chief Financial Officer last week. Johnson will take over the role on 15th October.

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Virgin Money laid off 300 workers in July

In 2018, Virgin Money took over Clydesdale and Yorkshire Banking Group after which it had revealed plans of reducing its headcount by close to 16%. The upcoming job cut, the company added, is a part of that forecast.

Virgin Money laid off 300 workers in July and closed 52 of its branches. The British firm, however, highlighted on Wednesday that it remains committed to avoiding compulsory layoffs as much as possible.

Chief strategy and transformation officer, Lucy Dimes of Virgin Money commented on the news and said:

“We are committed to bringing our operations together under the Virgin Money brand to offer customers a sustainable business which is fit for the future.”

TSB, HSBC, and LV also resorted to deep cuts

With the new wave of COVID-19 cases in the United Kingdom, British finance companies have been pushed in recent weeks into cost-cutting. Virgin’s rival, TSB said last week that it will slash its workforce by 900 jobs and will close 164 of its branches to combat the COVID-19 crisis.

Insurer LV and the largest European investment bank, HSBC, have also resorted to deep cuts.

Shares of the company slid less than 1% on market open but rallied 2% in the later hours. Virgin Money now has a per-share price of 81.60 pence. In comparison, it was exchanging hands at a much lower 54.22 pence per share in the first week of April. Trading stocks online is easier than you think. Here’s how you can buy shares online in 2020.

At the start of 2020, Virgin Money was trading at a much higher 191 pence per share. Presently, the British banking and financial services brand has a market cap of £1.17 billion.