1,400 jobs are to go at the Clydesdale and Yorkshire Banks, its parent has announced.
The cuts amount to 17% of the banks’ workforce.
National Australia Bank Group (NAB), owner of Clydesdale and Yorkshire Banks, has completed a strategic review of the businesses and is looking to simplify its business model.
The jobs are to go by September 2015.
29 business centres are to close and nine will be ‘co-located’ with retail operations.
NAB has reported a 3.2% fall in underlying profits to £244m for the banks and a cash earnings loss of £25m.
A charge to provide for bad and doubtful debts is up £131m to £282m, while an additional provision of £120m for potential claims relating to PPI will be made.
David Thorburn, chief executive, said: “Simplifying our business model and focussing on our strengths in Scotland and the North of England are key to ensuring that Clydesdale and Yorkshire Banks deliver improved returns.
“It is clear that we must adapt to the exceptionally challenging economic environment we are operating in. We have had to take some difficult decisions but they are the right decisions for our business.
“To secure a sustainable future we must concentrate on retail and SME banking in our traditional heartlands. While the vast majority of our customers will be unaffected by the changes, unfortunately we do need to streamline the business and lose jobs. I don’t underestimate the impact of this on the employees affected, but our half year results clearly demonstrate why we need to act.
“NAB’s support in taking over the run-off of our commercial property portfolio will also underpin a more autonomous funding position. All these changes add up to a stronger and more competitive business and, in the long-term, this can only be in the best interests of our customers and employees alike.”