Doorstep lender to cut 340 jobs as home credit business slows down

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Doorstep lender Provident Financial plans to axe 340 jobs at its home credit business following a slowdown in trading.

Some 78 roles will be lost at the group’s Bradford head office and another 11 jobs will be cut across Yorkshire.

The remaining 251 redundancies will be across the UK. In total 12 per cent of the home credit headcount will be cut.

Mark Stevens, Provident’s managing director of the consumer credit division, said home credit customers are feeling the pinch and the group has to cut costs.

“There is very soft demand for loans and credit,” he said.

“We have fewer customers and less sales so we have had to rightsize the business. Home credit is under pressure.”

The affected staff were told yesterday afternoon. The redundancies include 262 field-based managers and clerks.

Provident said the plans were drawn up following a thorough review of roles and responsibilities. It added that the reduction in staff will ensure a better link between headcount and costs and the number of customers and sales.

Provident’s chief executive Peter Crook said: “The economic environment continues to be difficult for our customers as their incomes remain under pressure.

“This has an impact on the performance of our home credit business and we have reluctantly taken the decision potentially to reduce the number of roles.”

Last month Provident announced plans to take on payday loan company Wonga through a new online credit service called Satsuma Loans which will lend sums of up to £300 to customers.

The new operation will be promoted with a multi-million pound TV campaign. Provident said Satsuma would be the “antidote” to payday lending.