Record results can't save jobs (From Stroud News and Journal)

Record results can't save jobs

ALMOST half the 60 members of the management team at the Stroud & Swindon building society's Stroud headquarters have been told that they are to be made redundant as the result of a sweeping review of the society's operations which also includes the closure of five branches.

The staff were told the news at a meeting with the society's senior management on Tuesday last week, just days before the announcement on Friday of record results.

A total of 47 jobs are to be axed from headquarters and the branch network, over 10 percent of the society's total workforce of 430 jobs nationwide.

The holders of the 29 redundant management posts in Stroud will all be given the opportunity to apply for 18 new managerial posts to be created as a result of the review.

Five branches have been earmarked for closure, two in London and one each in Berkeley, Swindon and Yeovil.

John Parker, the society's chief executive, said this week that the changes were being made to improve efficiency, maintain the society's competitive edge and to manage costs. He stressed that the society intended to strengthen the telephone, postal and internet areas of the business.

The branch closures in London and Yeovil are outside the society's heartland area of Gloucestershire, Wiltshire, Avon, north Somerset and Glamorgan.

The Swindon branch is one of two in relatively close proximity in the town and the Berkeley branch is simply not bringing in enough business.

Mr Parker told the News & Journal that despite a very good year last year the society's borrowing was substantial, profit margins were being really squeezed and the cost of management of the society's funds, while currently below the industry average at 1 percent, was not in line with the market leaders at 0.8 percent.

"We don't intend to be left behind and these changes will set us on our way," he said. "The object is to grow the basis of the business."

He added that following consultation the changes would probably take effect in June and that redundant staff were being offered an enhanced redundancy package.