More jobs expected to go as Virgin Money deal spells the end for Clydesdale brand

CYBG completed the takeover of Virgin Money in October in a deal worth £1.7bn and CYBG said today that both Clydesdale and Yorkshire banks will now be re-branded as they assume the name of Virgin Money across it’s operations.

The Clydesdale and Yorkshire Banking Group said it was also rolling out further automation within its branches and operations under plans to increase annual cost savings by another £50m to £200m by 2022.

However, Virgin Money said it will continue to issue Clydesdale notes despite the wholesale rebrand plan.

On the cost savings, a spokesman said the additional £50m was likely to come from a further push towards automation and its technology transformation.

The spokesperson 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.”

CYBG warned the extra cost savings could lead to further potential job losses on top of around 1500 already set to go as a result of the Virgin Money deal.

It came as the group also said it will fire the starting gun on its re-brand to Virgin Money this year, starting with digital banking arm B, which will complete by next June.

This will be rolled out to Clydesdale Bank by 2020 and the entire business is scheduled to be fully re-branded the following year.

The wider CYBG holding company will change its name to Virgin Money by the end of this year.

Around a dozen of the company’s branches on both side of the border will close, but it plans to combat this by rolling out more automation and self-service machines in its network.

CYBG boss David Duffy said the decision to axe the Clydesdale and Yorkshire bank brands was “not an easy one”.

Mr Duffy said: “Our plan for the new Virgin Money means that for the first time there will be a major disruptor that can serve the whole of the UK, combining the very best technology with a great personal service and an absolute focus on being a customer champion.  We’re looking to reinvent the role a bank plays in people’s lives.

“Clydesdale and Yorkshire Bank have been serving customers in Scotland and the North of England for over 175 years. 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.  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.”