Property review

Virgin Money confirms cuts to office space

Virgin Money

Virgin Money will take a restructuring charge on closures

Virgin Money has confirmed a rationalisation of office space but says it remains committed to moving into a new building in Glasgow.

Some offices will close, while use of others will see reduced space from this month.

The changes follow Virgin Money’s announcement on 30 September that it will have lower office space requirements as office hubs are re-purposed to fit new ways of working. 

The group said at the time that the office rationalisation, together with the closure of 31 branches, will see it incur a £45m restructuring charge in Q4.

Under ‘A Life More Virgin’, the majority of staff will be able to work remotely for significant periods of time, travelling to offices primarily for collaboration purposes.

Virgin Money will deliver modern, collaborative hubs for colleagues in its key locations under its new working arrangements.   

The bank said its “long-term strategy” remains to move into the new, purpose-built offices at 177 Bothwell Street, Glasgow, which will be the city’s largest new office building. The bank aims to move in towards the end of 2023.  

177 Bothwell street

Staff must wait two years to move to new Glasgow offices

Use of Guildhall, Queen Street will reduce which, along with offices at St Vincent Place and West George Street, will provide “collaboration space” ahead of the move to Bothwell Street.   

Granite House, which previously accommodated staff dealing with payment protection insurance (PPI) claims, was closed at the start of the pandemic and will not reopen due to the ending of that programme. 

Virgin said it remains committed to its presence in the north east of England. The site at Jubilee House, Gosforth was already larger than required pre-pandemic, and six buildings will now be closed.  

By refocusing costs, two of the remaining buildings will be refitted to enable greater collaboration and a better choice of how and where staff can work, with an additional building retained for contingency purposes. The work to deliver this will complete during 2022.  

The bank will upgrade its office space on Leeds Briggate, its largest site in Yorkshire. Additional desks for colleagues will also be introduced across a number of stores in the surrounding area.  

Fraser Ingram, chief digital and innovation officer at Virgin Money, said: “With ‘A Life More Virgin’, our colleagues have much more flexibility to choose how and where they work.

“To support this, we will ensure we offer modern, vibrant and collaborative hubs in our key locations, striking the right balance between creating spaces to support the needs of our colleagues, cost efficiency and our commitment to reducing our carbon footprint.” 

Virgin Money said it will work with staff to ensure the final design of the new physical footprint meets everyone’s needs. 

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.