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The job losses - around a third of its 6,000 staff - are due mainly this year and form part of plans to shrink the Newcastle-based bank under public ownership. The Unite trade union has

called on Northern Rock not to make compulsory redundancies. Deputy general secretary Graham Goddard said: "The workforce did not contribute to the situation which the bank now finds

itself in and should not be expected to pay the ultimate price by being forced out of their jobs." The firm was bailed out with £25 billion in public cash after a funding crisis last

September - sparking the first UK bank run for more than 140 years - before being nationalised in February. The job losses were first announced by Northern Rock's executive chairman Ron

Sandler in March. It was revealed the same month that the man who led the company into the crisis, former chief executive Adam Applegarth, was entitled to a £760,000 payoff. Mr Sandler

said: "This is a very difficult time for our people and we will continue to work closely with them and Unite, to minimise the extent and impact of potential job losses." But at the

beginning of the 90-day process, Mr Goddard called for "meaningful consultation" ahead of any decisions on job cuts. He added: "Throughout the last seven months of

uncertainty the employees of Northern Rock have remained committed to the long-term success of the company. Decisions must not be made merely in the pursuit of short-term cost savings."

The union is also opposed to selling off the company's assets cheaply and has demanded assurances over the employment conditions and pension rights of staff.