19 Feb, 2008
Platform has revealed that it is set to
make up to 65 members of staff redundant on the back of significant
changes to the structure of its business.
It says the combination of difficult market conditions and a
significant reduction in business volumes has led it to today's
decision to cut its workforce.
Job losses will be predominently in Platform's marketing and
sales departments and the 65 job losses will be out of current head
count of 304 at the lender.
Its sales team will be restructured to better support its customers
and a new proposition department will be created combining the
functions of marketing, product development and e-commerce.
It will also be forming a lending services department which will
consist of a mortgage processing team and a service management
All proposed structural changes are subject to a period of
consultation with employee representatives.
The lender says the aim is to ensure it remains competitive during
the current market turmoil.
The planned changes follow a thorough assessment of Platform's
business model and associated organisational structure.
As a result, Platform will focus on both its packager partners and
direct customers whose values, ethics and long term objectives are
aligned with its own.
It says this approach will ensure it maintains the right balance
between prime, sub-prime, buy to let and self-cert lending to
achieve its targets.
David Tweedy, managing director at Platform, says: "As one of the
longest established businesses in this market and, as part of the
Britannia Group, Platform places a great deal of value on its
"We initially took the stance that we would wait until the
market stabilised before taking any action but unfortunately, owing
to worsening market conditions, we are forced to re-assess the
"We have been able to keep the number of job cuts to a minimum
through strict controls on recruitment throughout 2007 and by
utilising a new groupwide redeployment process.
"The impact is much less than we are seeing with most of our
competitors but nonetheless, it is likely that up to 65 colleagues
from a total headcount of 305 will lose their jobs.
He adds: "I am personally saddened by the need to make people
redundant but it is the right thing for us to do at this time to
secure the future of the business and ensure that we are in a good
position to react to any changes in the market when they occur.
"Platform remains a hugely ambitious organisation and its focus on
delivering the group strategy remains the same. With the ongoing
support of its parent Britannia, Platform continues to be fully
committed to the UK intermediary mortgage market."