Northern Rock to More than Double Debt Workers
According to a recent report the recently nationalised bank and personal loans provider, Northern Rock, is set to more than double the number of staff working in its debt management sector, which has fuelled fears that the nation may be closer recession that many originally thought. The bank is increasing the number of staff in its debt management sector even though it is also in discussions to cut around two thousand jobs in other areas over the next three years.
Industry officials think that Northern Rock is increasing the staff levels in this sector because it is expecting huge increases in the number of mortgage defaults over the coming months. At present the number of staff working in this sector for the bank stands at 176 but this is set to more than double to 444. The news comes after a memo was apparently seen by BBC Radio Newcastle.
An official from the bank recently stated: “As part of Northern Rock’s business plan the company is committed to further strengthening its controls and processes and debt management is one area where this strengthening will occur.” It is thought that the new members of staff for the debt management side will come from other areas within the bank, as Northern Rock tries to cut staff from certain areas and increase them in others.
The bank has been trying to cut costs in a number of ways, by decreasing its mortgage assets by around 50%, and by cutting the staff nunbers in its lending division from 1152 to just 478 by next year. However, its intention to increase staff numbers in this one area is said to be cause for concern with regards to soarking mortgage default expectations and the likleuihood of recession.
