Catherwood LibraryILR School

Northern Rock has said it will cut about 2,000 jobs and reduce its residential mortgage lending by half. The job cuts, which account for about a third of its staff, will be made by 2011 under plans to turn around the ailing bank's fortunes. The Newcastle, UK, bank was nationalized in February after the credit crisis forced it to seek a Bank of England lifeline, to fund its mortgage loan book. The bank needs European regulators to approve its rescue plan, and the EU Commission has begun examining details of Northern Rock's proposals. Under EU rules, public support can be allowed to stop firms from going bankrupt, but long-term government aid that is seen to undermine competition is not allowed.