3,000 jobs at risk in tidal wave of bad news
THE UK was facing the loss of more than 3,000 jobs today after a string of companies delivered bad news that amounted to an economic earthquake.
As Royal Mail revealed it was planning to axe 1,600 managerial level staff, car company Honda said it was cutting 500 production line jobs at its plant in Swindon, where it makes the Civic.
In the space of just a couple of hours there was the news that struggling pawnbroker Albermarle & Bond was calling in the administrators, putting the jobs of up to 1,000 staff at risk, while the Australian owner of the Clydesdale and Yorkshire banks was closing 28 'unsustainable' branches.
Instead it is investing £45 million in six 'flagship' branches as well as improving its online and mobile banking services.
Clydesdale and Yorkshire, owned by National Australia Bank, said the closures would save £5 million, adding that frontline jobs would be safeguarded. It has not said how many jobs will be lost.
At Honda, the Japanese car company said it was cutting production at Swindon from three shifts to two, threatening 340 full-time jobs and the roles of 160 agency staff.
Most cars made at the plant go for export, and sales in other countries have not been as strong as in the UK.
"Over the last 12 months, we haven't seen the growth we'd anticipated. With no increase forecast for the next couple of years, we must scale our manufacturing activity accordingly," said Ian Howells, senior vice president of Honda Motor Europe.
Tony Murphy, national officer of the Unite union, said: "These job losses are a devastating blow, not just for these workers but for the thousands more across the industry whose work is dependent on the Honda plant.
"Decent, skilled jobs are being lost today and investment is being withdrawn, which is ringing alarm bells and putting the remaining workforce in fear for their future."
At Albermarle & Bond, talks with lenders to find a way to save the business have failed. Shares were suspended on the stock market yesterday and it is moving to appoint administrators PwC today.
It has 188 stores in the UK, including a branch in West Bromwich and the Herbert Brown jewellery chain - which has a branch in Wolverhampton city centre.
Plunging gold prices and increased competition have left the group struggling with losses and overstretched finances.
Meanwhile unions have warned of possible industrial action if Royal Mail resorts to compulsory redundancies as it axes 1,600 managerial-level staff.
