Tesco Bank is to close its offices next to Edinburgh’s Haymarket railway station in a move that will affect 600 employees.
The lender, owned by the UK’s biggest supermarket, said all its head office functions were being transferred to its headquarters at the city’s South Gyle business park.
But the move will see about 250 customer service roles in Edinburgh switched to the bank’s existing centres in Glasgow and Newcastle. Tesco Bank, led by chief executive Benny Higgins, currently employs about 600 staff at Haymarket, with a further 1,300 at South Gyle.
A spokesman said: “Earlier this year we started to establish a new business structure to drive greater collaboration across the bank to ensure that we are in the best position possible to serve Tesco customers. To further embed this new structure, we have today informed colleagues that all head office functions will be situated at our Edinburgh South Gyle headquarters, and that we will close our Edinburgh Haymarket Yards office.
“We are making this move from a position of strength, integrating our Edinburgh colleagues in one location is an exciting new phase of our journey and will support our ambition to build an innovative, progressive and vibrant workplace environment for the bank.”
He added: “We are committed to consulting with colleagues affected by the proposed move of roles to Glasgow and Newcastle and will develop a range of measures to support them in this transition.”
Conservative city councillor Iain Whyte described the job losses as a “blow to the city” but he also predicted it would be a “temporary setback” in the area’s revival.
The £200m Haymarket Edinburgh development – including the office space, retail outlets, restaurants and bars – looks set to bring “thousands of jobs” to the west end.
He said: “Anything like this is unhelpful but we have a strong financial sector in Edinburgh.
“This will be felt, particularly by those individuals who have to make a decision about whether to relocate or look for another job.”
Lothian Labour MSP Neil Findlay added: “This will be a concerning time for those affected because there is uncertainty about where they will be located in future. I hope Tesco continue to be fully committed to the Edinburgh area and fully engage with staff and trade unions to make any transition as smooth as possible.”