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London - Mortgage lender Northern Rock, which was taken over by the government after falling victim to a global credit crisis, on Thursday formally embarked on a program to lay off nearly a third of its staff within three years.
The company filed papers with the Department for Business Enterprise and Regulatory Reform on Thursday setting out its plans to lay off 2 000 of its 6 500 employees. The layoffs are part of a reorganization plan aimed at returning the bank to private ownership.
Northern Rock's management had announced it March that it expected to shed about 2 000 employees.
The company said it intended to immediately open discussions with the Unite union about the proposed cuts, which would mostly be carried out this year.
"This is a very difficult time for our people and we will continue to work closely with them and Unite, to minimize the extent and impact of potential job losses said Executive chairperson Ron Sandler.
"We remain closely engaged with local agencies...to ensure that those who may be affected are offered as much support as possible."
Unite's deputy general secretary, Graham Goddard, said the union would oppose any compulsory layoffs.
"The workforce did not contribute to the situation which the bank now finds itself in and should not be expected to pay the ultimate price by being forced out of their jobs," Goddard said.
"The union will be arguing strongly that through retraining and redeployment, alternatives to compulsory redundancies can be found," he said.