Nationwide Building Society is cutting around 600 jobs in the first significant wave of layoffs tied to its acquisition of Virgin Money.
The reductions will affect employees at both Nationwide and Virgin Money, primarily in roles that are expected to overlap as the two financial institutions combine their operations.
Virgin Money officially became part of Nationwide earlier this year after the building society completed its £2.9 billion acquisition. Since announcing the deal in 2024, Nationwide has provided few details about how the merger would affect its workforce.
The latest job cuts are understood to be focused on back-office functions rather than customer-facing positions. Employees working at the nearly 700 branches that Nationwide has committed to keeping open until at least 2030 are not expected to be affected.
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Nationwide, which employs about 25,000 people, has begun a consultation process with staff representatives over the proposed layoffs. The discussions involve the Nationwide Group Staff Union (NGSU) and Unite, which represents Virgin Money employees.
The Swindon-headquartered building society informed employees of the planned cuts last week as it moves forward with integrating Virgin Money into its business.
Nationwide defended the restructuring, saying it remains “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 also hiring for about 270 positions across the business, although the vacancies are not specifically earmarked for employees whose roles are being cut.
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The Nationwide Group Staff Union (NGSU) acknowledged that the merger had resulted in overlapping positions but expressed concern over the impact on workers.
Emma Clay, the union’s general secretary, said the takeover had “inevitably led to a duplication of roles” and added that the union was “disappointed by the impact they will have on affected colleagues.”
She stated: “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.”
When Nationwide announced its acquisition of Virgin Money two years ago, the deal was seen as a significant moment for the mutual banking sector. It marked a rare instance of a member-owned building society, traditionally focused on mortgages and savings, acquiring a major high street commercial bank.