650 jobs to go at Egg in Derby
More than 650 jobs look set to be axed at the Derby base of credit card company Egg. The blow to the city's economy comes after its owner Barclaycard revealed plans to service Egg clients from alternative customer service centres.
Barlcaycard’s revelation, which could meant the loss of up to 659 jobs in the city, comes just days after the future of Derby's Bombardier was thrown into doubt after it missed out on the contract to build the new Thameslink trains.
Egg workers in Derby were told of the plans yesterday (21 June). Barclaycard said that if it pushes ahead with the proposals, redundancies would take place in stages over the remainder of this year.
Barclaycard also said it is looking to support workers facing redundancy by hosting a series of jobs fairs with local employers. It stressed that there are relocation opportunities for those staff wishing to continue working for the company.
Paula Gowland, operations director at Barclaycard, said: "Our proposal to cease operations in Derby was a tough decision to make. People were informed as soon as the decision was made to give them as much time as possible to consider their options and take advantage of the extensive support and assistance we’ll be offering to every individual throughout the transition.
"The decision takes into account the interests of all our customers and the business. Barclaycard has an existing integrated and scaleable customer service operation which will provide Egg cardholders with a high quality service going forward without the additional capacity provided by the Derby operation."
George Cowcher, chief executive of the Derbyshire and Nottinghamshire Chamber of Commerce, said the timing of the two blows was "unfortunate".
He added the chamber was calling for a government taskforce to be set up to focus its attention on the city and look at how the local economy will absorb the impacts of the fallout.
Cowcher said: "The crucial thing now is to ensure that the mechanisms are in place to help support the workers facing redundancy and help them to find alternative employment as quickly as possible."
