Northern Rock said last week that it plans to become a smaller, more focused mortgage and savings bank. However, it still intends to continue with its securitization business.
The mortgage firm disclosed its plans to reduce staff by a third. By 2011, it intends to get rid of between 2,000 and 2,500 jobs. This comes with a reduction in the asset base by half over the same period. Northern Rock said it also plans to phase out state aid support over three to four years.