450 jobs to go at Bradford & Bingley

Up to 450 jobs are set to go at mortgage lender Bradford & Bingley as part of the group's cost-reduction plans.

According to the lender, the axe will fall across middle management, back office and support functions, rather than from branch customer-facing roles. One hundred and fifty jobs have already been parsed in these areas.

Bradford & Bingley said the cost-reduction programme, designed to trim £40 million in costs, is "on target" to be realised on schedule by 2006.

Cost savings will be driven out by the simplification of the business following completion of the disposal process, the group said. Non-core business interests include its Charcol mortgage company and the estate agency.

Out of the lender's 7,850 employees, 3,900 are employed by or in support roles associated with non-core businesses and will transfer with the businesses when they are sold, the group added.

However, Bradford & Bingley said that it has "no intention to reduce our overall number of branches and believe that scope exists to expand our coverage over the next few years".

"We remain committed to our branch-based retail business and are working to increase alternative channels, including direct and on-line, to reach our target market," the company added.

Today's statement also said that, on the basis of the expected results for the half-year, the group "is comfortable with the full-year consensus figures for the business as a whole". Interim results are due to be announced on August 6.

A Bradford & Bingley "consensus forecast" of 17 analysts found that 2004 would see £267 million in profits before tax.

Steven Crawshaw, Group Chief Executive, said: "Our core selective lending business has continued the strong performance it showed in 2003 and arrears levels are extremely low. The buy-to-let market has continued to be robust, we have made progress in diversifying our funding base and we have been able to accelerate our plans for the delivery of cost savings from the core business.”

(gmcg)