Around 450 staff at Cattles lending subsidiary Welcome Finance have been told today that they are at risk of redundancy.
Cattles is reviewing the Welcome business following its decision to stop lending through Welcome in order to focus on its existing customer loans.
The company says that this process could take two to three years and that as a result its cost base has to fall in line with the reduction in its book.
Cattles has today announced plans to close around 70 Welcome local management branches and local collections units, putting about 450 employees at risk of redundancy.
Affected staff will now enter into a consultation period.
Margaret Young, executive chairman of Cattles, says: “These proposals to further streamline the Welcome organisational structure have been put forward after an extensive review and careful consideration.
“We believe they are essential to Cattles achieving a more cost efficient business model which mirrors the reducing size of the group’s loan book.”
The announcement follows Cattles’ decision to close 30 of its Welcome branches in September.
At the time 510 staff were placed into consultation.