Northern Rock, the Government-owned mortgage lender is cutting a third of its staff - estimated at more than 2,000 by 2011.

These cuts are seen to be essential by Ron Sandler, (Northern Rock’s new Executive Chairman), as the Bank looks to repay an emergency loan of £25 billion.

Graham Goddard, general secretary of the union Unite, says: “The employees of the bank have already faced months of insecurity and anxiety about their future. News that staff numbers will be reduced as part of the restructuring plans for Northern Rock will cause further uncertainty for the workforce.”

Although news of job cuts is always bad news, the North East Chamber of Commerce have stated that there are many vacancies in the region which could be filled by Northern Rock employees.  Chief executive James Ramsbotham says: “Skilled and motivated workers such as these will be in high demand and there are a number of Chamber of Commerce members who would be keen to talk with the people affected by today’s announcement”.

In addition, Northern Rock will work with One NorthEast - a regional development agency, to help affected staff.