Virgin Money UK has notified its employees that one-third of its branches are set to close by the end of this year.
The challenger bank, which incorporates Clydesdale and Yorkshire Bank chains, told its staff that it intends to close 39 ‘stores’, which will result in 260 employees losing their jobs.
Following a review of customer usage patterns, the company made the challenging decision to shutter some of its branches starting from October 2023, according to a statement on its website by the FTSE 250-listed group.
Citing an increase in digital service usage, the bank stated the need to balance investment in online services while ensuring its physical store network continues to cater to its customers’ needs.
Last year, VMUK generated a profit of £595 million and declared £267 million in shareholder dividends and buybacks.
The Unite trade Union condemned the decision in light of the banking industry’s substantial profits and urged banks to take their obligations to their customers and communities more earnestly.
Sharon Graham, Unite’s general secretary, expressed concern for the 260 skilled and experienced employees who face potential job loss amid economic uncertainty. She emphasized the financial services sector’s responsibility towards its customers and local communities, especially given its significant profits. She stressed that access to a bank and cash is essential for all local high streets and criticized banks for disregarding the needs of customers who contribute to their substantial profits.
Since 2015, more than 6,000 bank branches have closed, according to Unite.
Here are the locations of Virgin Money’s impending branch closures: Belfast, Bournemouth, Brighton, Bristol, Bromley, Cambridge, Cardiff, Chelmsford, Cheltenham, Chester, Croyden, Derby, Durham, Ellon, Enfield, Exeter, Fort William, Golders Green, Gosforth Centre, Guildford, Harrow, Hexham, Irvine, Kendall, Kensington, Kingston, Liverpool, Lochgilphead, London Haymarket, Milton Keynes, Newton Stewart, Norwich, Oxford, Reading, Southampton, St Albans, Swindon, Turrif, Wolverhampton.
