Nationwide Building Society is set to cut 600 jobs in the first major wave of redundancies linked to its takeover of Virgin Money, as the lender moves forward with integrating the two businesses.
The job losses will affect employees at both Nationwide and Virgin Money, primarily in back-office roles where duties are expected to overlap once the merger is fully completed.
Virgin Money officially became part of Nationwide earlier this year following the building society’s £2.9 billion acquisition, which was first announced in 2024.
Customer-facing positions, including staff working across nearly 700 branches, are not expected to be affected. Nationwide has pledged to keep its branch network open until at least 2030.
The organisation, which employs around 25,000 people, has begun a consultation process with trade unions, including the Nationwide Group Staff Union (NGSU) and Unite, which represents Virgin Money employees.
Nationwide said it is “now the UK’s fastest-growing banking provider, continuing to attract more customers and expand into new areas such as business banking”.
It added: “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 lender is reportedly recruiting for approximately 270 vacancies, although these positions are not specifically reserved for employees facing redundancy.
Emma Clay, general secretary of the NGSU, acknowledged that the acquisition had “inevitably led to a duplication of roles” and said the union was “disappointed by the impact they will have on affected colleagues”.
“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,” she said.
Nationwide’s purchase of Virgin Money was hailed as a landmark deal for the mutual sector, marking a rare example of a member-owned building society acquiring a major high street bank.
However, the takeover sparked controversy after Nationwide declined to give members a vote on the acquisition.
The lender later cited the enlarged business as justification for increasing chief executive Debbie Crosbie’s maximum remuneration package by 43%, allowing her potential earnings to rise to £7 million.
According to Nationwide’s latest annual report, Crosbie received £3.2 million in bonuses during the year to March 2026, taking her total pay package to £4.7 million.
The planned redundancies also follow earlier job cuts made before the Virgin Money acquisition was completed, with around 800 positions removed by early 2024.