Virgin Money to shut 39 bank branches with 255 jobs facing axe

It blamed the plans on changing customer demand, which has seen fewer people go into banks in favour of online services.

Virgin Money has revealed plans to shut 39 branches (Mike Egerton/PA) (PA Wire)

Virgin Money is to shut almost a third of its bank branches, with 255 workers facing potential redundancy.

The high street banking business said it will shut 39 local banks due to changing customer demand, which has seen fewer people go into banks in favour of online services.

The sites affected have seen the number of customer transactions fall by an average of 43% since the pandemic hit in March 2020.

As our customers continue to change the way they want to bank with us, by conducting fewer transactions in-store and adopting the convenience of digital banking, we must respond to that evolving demand

Sarah Wilkinson, Virgin Money

Virgin Money said it has decided to close these stores based on factors including footfall, transaction volumes and the number of potentially vulnerable customers in the local area.

It said each store is closing less than half a mile from the nearest Post Office.

Sarah Wilkinson, chief operating officer at Virgin Money, said: “The decision to close a store is never taken lightly.

“But as our customers continue to change the way they want to bank with us, by conducting fewer transactions in-store and adopting the convenience of digital banking, we must respond to that evolving demand.

“For our colleagues, we will pursue all options to retain as many as possible within alternative roles, and have had great success previously with store colleagues moving to other customer operations roles, as their skills are highly transferable.”

Simply walking away from the consumers who bring the banks astronomical profits is a complete disgrace

Unite general secretary Sharon Graham

The bank said it will write to customers affected and display posters about the move at least 12 weeks before branches are shut.

It will leave the company with 91 branches across the UK.

Unite general secretary Sharon Graham said: “This announcement of the closure of 39 vital bank branches has sent shockwaves across the Virgin Money UK workforce.

“While the financial services sector is acquiring eye-watering profits, they must start taking their responsibilities to customers and communities more seriously.

“Access to a bank and cash is a fundamental need for all our local high streets.

“Simply walking away from the consumers who bring the banks astronomical profits is a complete disgrace.”