Banking group CYBG has outlined plans to slash costs by £200m and increase job losses on top of the 1,500 roles already set to go.
The sweeping cost cutting measures were first announced last October when CYBG acquired Newcastle’s Virgin Money, and vowed to make £150m of savings.
But the group has now increased its costs cutting plans by a further £50m, which could lead to additional job losses.
A spokesman said the savings are likely to come from more automation in branches.
He said: “It might include some further role reductions and automation in the branch network and other operational areas.
“We will continue to work through the details and will inform our colleagues first of any implications.”
At the same time CYBG said it would also be rebranding its business, and would take on the Virgin Money name before the end of the year. The entire company would be rebranded by 2021, meaning the end of the Clydesdale and Yorkshire Bank brands, which have been around for more than 175 years.
The group will begin by rebranding its digital banking arm B to Virgin Money in 2019, to complete by next June, while this will be rolled out to Yorkshire Bank in 2019 and Clydesdale in 2020.
CYBG chief executive David Duffy said: “Both brands are a by-word for reliability and trust and we understand the emotional attachment customers and local communities have towards them.
“The decision to retire brand names with such long and proud histories is not an easy one.”
He added: “Marrying the values and expertise of these heritage brands with the Virgin Money brand will allow us to realise efficiencies and grow our business throughout the UK.”
Virgin Money will also launch its first current account later this year. The launch is part of the group’s plans to increase its share of the personal current account market by around 40%.
It will launch the first ever Virgin Money business current account by summer 2020 and is again looking to increase it market share by around 40%.
Mr Duffy said: “Despite the ongoing Brexit headwinds and continued competitive pressures, the strength of the combination gives us every confidence we will deliver on our targets.”
