LONDON - Alliance & Leicester has announced that it would be axing 350-poaper processing jobs by the end of 2006 in order to improve efficiency and cut down the retail costs of banking. This move will save around £10 million per year for the seventh-largest mortgage bank in the UK.
Clarifying the need for the voluntary redundancies, Alliance and Leicester chief executive Richard Pym issued a statement saying, "We are transforming Alliance & Leicester into the UK's leading direct bank. This requires modern, efficient banking processes across the group."
The redundancies are to take place at Bootle in Merseyside. The bank expects to be able to carry out this measure in a one off cost of about £20 million to £25 million. The bank said that call center staff should be able to handle many queries without having to pass them on to the paper-processing units.
"When we get all the applications in, it'll be a bit like a game of musical chairs. Voluntary redundancy will be offered to everyone who is not in management. The technology is not coming in until later this year," a spokeswoman of the bank was quoted as telling silicon.com.
The bank has been coping with the tough times by asking customers to complete most of their transactions by telephone and has resorted to closing unproductive branches. Alliance & Leicester has a total staff of 8,500 workers with 2,000 stationed at Bootle. In the backdrop of this news, shares in the bank rose 7-1/2 pence to 991-1/2 pence in morning trading.
Posted
on : Sat, 28 Jan 2006 20:05 GMT | Loans News
By : Rob Davis
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