The closure is part of a restructuring effort which will result in around 330 jobs being lost.

CYBG issued a statement on Tuesday which said: “CYBG has identified an opportunity to accelerate the consolidation of operational function offices across the Combined Group through the earlier than expected closure of a small Virgin Money corporate office at 28 St Andrew Square, Edinburgh.”

The statement also revealed that the group intends to leave the property in December this year.

Insider reported that staff from the office on St Andrew Square are expected to transfer to the group’s office at nearby George Street before the end of the year. CYBG is to concentrate its back office functions at its new office in Glasgow’s Bothwell Street and Gosforth in Newcastle.

Regional offices will remain in Edinburgh, Chester, Leeds and London and fundraising platform Virgin Money Giving will continue to be based in Norwich.

However, Virgin Money’s Discovery House based in Norwich and Yorkshire Bank’s Merrion Way base in Leeds will close, with employees due to transfer to other offices.

The job loses will predominantly impact brand & marketing, retail distribution, chief operating office and risk and mortgages.

The statement issued by CYBG reaffirmed however that “CYBG’s integration of the Virgin Money business into the wider CYBG group continues to progress well and the Combined Group remains on track to realise the strategic and financial benefits of the transaction and create a true disruptor to the status quo.”

David Duffy, chief executive, said: “The consolidation of our operating centres supports our goal to create a more streamlined and efficient business – focussing on two key operational centres in Glasgow and Newcastle, supported by teams based in Leeds, Edinburgh, Chester and London. Detailed planning is in place to ensure that the bank is able to safely transfer operations to the core hubs over time, while continuing to provide the same great service for our customers every day.

“We recognise that some exit dates are quite far in the future, however, we want to be open with colleagues and give them clarity on changes as soon as possible. They are our key priority and we will support them through this change with as much choice and flexibility as possible.”

When Virgin Money moved into its 30,000 sq ft office at 28 St Andrew Square in 2011, it became the firm’s new headquarters. As the lease was signed until June 2022, it was described as “the biggest city centre deal in Edinburgh since 2009”.

In November that year, Virgin Money took over the retail banking operations of Northern Rock, making Virgin Money a significant high street player.

CYBG acquired Virgin Money from Sir Richard Branson’s Virgin Group in 2018 and is to make that its main corporate brand as it phases out the historic Clydesdale and Yorkshire names.

CYBG said the Virgin Money lounge customer branch in St Andrew Square will remain open.