Bradford and Bingley slash jobs to cut costs
While on the face of it this may look like a desperate move by the Bradford and Bingley at least it can be argued that they are not sitting on their hands watching 'Rome burn'. The move to cut 370 employment positions, mainly from the group's mortgage operations, is a step in the right direction and it is estimated that it will cut £15 million a year from its cost base.
However, just as details of the job cuts were hitting the news wires it turns out that the group has also sold off a tranche of 'toxic' investments and been forced to book a loss in the region of £134 million on the disposal. This has forced the share price to an all time low of just 23p, well below the 55p at which the group raised funds just a few months ago. So what next?
As we have covered on this site on a number of occasions the future looks bleak for the group unless a White Knight is about to ride to the rescue. Falling business, toxic investments hitting the asset base and a growing feeling of uncertainty about the future of the group does not bode well for the immediate future. While plans are supposedly afoot to bail the group out of its troubles who would want the business in its current state?
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