Nationwide building society is cutting 600 jobs in the first major round of redundancies linked to its controversial £2.9bn takeover of Virgin Money. The move affects staff from both companies whose roles are duplicated as operations are merged.
Virgin Money formally became part of Nationwide this spring after the deal, which was first announced in 2024. Nationwide had remained silent about the potential impact on workers until now.
Back-Office Staff Affected
The cuts are understood to target back-office roles rather than customer-facing positions. Nationwide has pledged to keep nearly 700 branches open until at least 2030. The building society employs about 25,000 staff and is now in a weeks-long consultation with the Nationwide Group Staff Union (NGSU) and Unite, which represents Virgin Money bank staff.
Nationwide revealed the plans to colleagues last week at its headquarters in Swindon. A spokesperson said: "We are now the UK's fastest-growing banking provider, continuing to attract more customers and expand into new areas such as business banking. As we integrate Virgin Money, we are making some modest changes in areas where activities overlap. However, we’re committed to retaining the talent and skills of our colleagues wherever we can."
The building society is recruiting for about 270 roles, but none are specifically reserved for affected staff.
Union Reaction
Emma Clay, general secretary of the NSGU, said the union recognised that the takeover had "inevitably led to a duplication of roles" and was "disappointed by the impact they will have on affected colleagues." She added: "Our priority is to ensure that consultation is meaningful, that all reasonable alternatives are properly considered, and that every member receives the support and representation they need throughout the process."
Controversial Takeover
The takeover of Virgin Money was a rare instance of a member-owned lender snapping up a commercial high street bank. However, it proved controversial as Nationwide refused to give members a vote on the deal. Nationwide later used the takeover to justify a 43% hike to chief executive Debbie Crosbie’s maximum pay package, allowing her to earn up to £7m if all criteria were met. Members were not given a binding vote on Crosbie’s pay rise at last year’s annual general meeting.
Nationwide’s annual report, released this month, showed Crosbie received £3.2m in bonuses, pushing her total pay to £4.7m for the year to March 2026.
Previous Job Cuts
Nationwide had already cut about 800 jobs by early 2024, including 200 redundancies announced shortly before Christmas 2023. That came after Crosbie rescinded a "work anywhere" policy introduced by her predecessor during the pandemic.
