This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7229691.stm

The article has changed 9 times. There is an RSS feed of changes available.

Version 1 Version 2
Northern Rock jobs under threat Northern Rock jobs under threat
(20 minutes later)
Jobs at Northern Rock will be cut if Virgin Group ends up controlling the troubled bank, the BBC has learned.Jobs at Northern Rock will be cut if Virgin Group ends up controlling the troubled bank, the BBC has learned.
Virgin has abandoned its commitment to no job cuts because government-backed bonds to be issued by Northern Rock have to be repaid within three years.Virgin has abandoned its commitment to no job cuts because government-backed bonds to be issued by Northern Rock have to be repaid within three years.
Employee numbers would probably come down from 6,000 to about 5,000, says BBC business editor Robert Peston.Employee numbers would probably come down from 6,000 to about 5,000, says BBC business editor Robert Peston.
The tight deadline is thought to have ruled investment fund Olivant out of the race to control the Newcastle firm.The tight deadline is thought to have ruled investment fund Olivant out of the race to control the Newcastle firm.
Sir Richard Branson had previously said that he was confident there would be no redundancies under a Virgin rescue.Sir Richard Branson had previously said that he was confident there would be no redundancies under a Virgin rescue.
But Virgin Money boss Jayne-Anne Ghadia, who would run Northern Rock in the event a Virgin rescue was accepted by the Treasury, has told the BBC that job losses would be greater than originally anticipated.But Virgin Money boss Jayne-Anne Ghadia, who would run Northern Rock in the event a Virgin rescue was accepted by the Treasury, has told the BBC that job losses would be greater than originally anticipated.
The chancellor has decided that the priority is speedy repayment of all those taxpayer loans, even if it means job losses Robert Peston, BBC business editor The chancellor has decided that the priority is speedy repayment of all those taxpayer loans, even if it means job losses Robert Peston, BBC business editor class="" href="http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/02/virgin_and_rock_jobs_to_go.html">Read Robert's thoughts in full
She won't put a number on it, but employee numbers would probably come down from 6,000 to about 5,000, the BBC's business editor Robert Peston said.She won't put a number on it, but employee numbers would probably come down from 6,000 to about 5,000, the BBC's business editor Robert Peston said.
He added: "The government may be embarrassed by her disclosure that job losses would stem from financial conditions imposed by the Treasury."He added: "The government may be embarrassed by her disclosure that job losses would stem from financial conditions imposed by the Treasury."
Loan repaymentLoan repayment
On Friday, the government told all potential rescuers that up to £40bn of Treasury-backed bonds to be issued by Northern Rock would have to be repaid in between one and three years.On Friday, the government told all potential rescuers that up to £40bn of Treasury-backed bonds to be issued by Northern Rock would have to be repaid in between one and three years.
In order to do that, Mr Peston suggested, any rescuer - including Virgin - would have to massively shrink the size of Virgin's mortgage book from more than £100bn to about £60bn.In order to do that, Mr Peston suggested, any rescuer - including Virgin - would have to massively shrink the size of Virgin's mortgage book from more than £100bn to about £60bn.
The smaller the business, the fewer people it would need to service its mortgages.The smaller the business, the fewer people it would need to service its mortgages.
"In other words, the chancellor has decided that the priority is speedy repayment of all those taxpayer loans, even if it means job losses in Newcastle," Mr Peston said."In other words, the chancellor has decided that the priority is speedy repayment of all those taxpayer loans, even if it means job losses in Newcastle," Mr Peston said.
Northern Rock is a key employer in the North East and job losses could prompt a further backlash over the government's handling of the crisis at the bank.Northern Rock is a key employer in the North East and job losses could prompt a further backlash over the government's handling of the crisis at the bank.