BANK of Scotland has announced it has axed nearly 100 jobs across the UK – half of them in Edinburgh.
Human resources managers at the banking giant called staff into personal meetings yesterday to inform them of the news.
It was claimed some employees were told their employment would be ended with immediate effect and were then required to leave t
he premises.
The Edinburgh-based firm confirmed that 90 posts were to be axed across the UK, with around 45 in its home city.
BoS becomes the latest global financial heavyweight to cut jobs in reaction to the credit crunch, and business leaders fear that more jobs could go in the city's financial district.
Among the offices affected is New Uberior House in Tollcross – the main base for Bank of Scotland Corporate in the city. Other city locations have also been hit.
A spokesman for Bank of Scotland said: "Like all debt providers, Bank of Scotland Corporate constantly reviews its operations to ensure it has the right level of staff to meet its needs.
"We have decided to potentially reduce staffing levels by around 90 posts across the UK."
Although staff have been informed of the decision, the bank still has to finish the process before it can say the staff have been made redundant.
The job cuts come only days after HBoS announced a "writedown" of its assets by another £2.8 billion connected to the credit crunch. It also announced it was to ask shareholders for an additional £4bn of funding as it bids to stave off the effects of market turmoil.
A worker in Bank of Scotland Corporate's New Uberior House office at Earl Grey Street said staff were called into a meeting this morning and informed that they were being made redundant immediately.
"I was escorted out of the building straight after," the staff member, who asked not to be identified, said.
"You just have to collect your personal belongings and leave right away.
"You don't even go back to your desk, so I don't know yet how many people in my department had the same thing happen."
Graham Birse, deputy chief executive of the Edinburgh Chamber of Commerce, said: "Clearly this is a concern for the families involved, but it is not entirely surprising in terms of the sub-prime losses that there is an impact.
"Given Edinburgh is a financial city, we have expected a fallout for some time and that may not even yet be completed.
He added: "Everyone is maintaining a watchful eye and many (banks] will need to cut their cloth. There is a potential impact that we have to be prepared for."
