What I've been working on this past month...

Two of the bigger players in Glasgow's financial sector have been making the headlines these past few weeks with news that could impact employment within the city.

Nationwide Building Society and Virgin Money, the institution that owns the former Clydesdale Bank, announced on March 7 that they had reached a preliminary agreement for a £2.9 billion takeover bid by Nationwide of its smaller rival. Two weeks later it was confirmed that the 220p per share offer will go to a vote by Virgin Money shareholders, and if approved the deal will likely complete in the fourth quarter of this year.

READ MORE: Nationwide boss returns to Glasgow roots with Virgin deal

The move will see the eventual demise of the Virgin Money brand with chief executive David Duffy standing down upon completion and Nationwide boss Debbie Crosbie taking charge of the enlarged group. Nationwide chief financial officer Chris Rhodes will take on the position of chief executive of Virgin Money, which will continue to trade under that name for up to six years.

The deal is a homecoming of sorts for Ms Crosbie, a former senior executive at Clydesdale Bank. She led preparations for the 2017 demerger and subsequent flotation of Glasgow-headquartered Clydesdale from National Australia Bank, but then missed out on a permanent appointment to the top job and was instead recruited to the post of chief executive at TSB.

Nationwide has said it does not intend to make any “material changes” to the size of Virgin Money’s 7,300-strong workforce within the first year, but is assessing the employee needs of the combined group and expects there to be some “limited” impact on back office staff. Union representatives from Unite have said they are seeking urgent clarity over the future of Virgin Money's 3,500 employees in Scotland.

READ MORE: 'Anxiety' among Virgin Money staff in Scotland as Nationwide takeover looms

Meanwhile, the new chief executive of Direct Line has said he will cut the company's cost base by £100m by the end of next year as the insurance group battles claims inflation and fended off takeover approaches from a Belgian rival. The announcement by Adam Winslow came as Direct Line posted an operating loss of £189.5m for the year to the end of December, up from £6.4m previously.

Direct Line has not clarified whether this will lead to immediate job cuts or a reduction in headcount over time. Mr Winslow - who is completing a "comprehensive strategic review" and will report back again in July - has said staff will be the first to be informed in the event of cuts.

READ MORE: Customers ditch Direct Line as car insurance premiums surge

Direct Line is the UK's second-largest motor insurance group and a major employer in Scotland with approximately 1,000 staff based mainly out of Direct Line House in Glasgow's Cadogan Street. 

The group - whose brands also include Churchill, Darwin, Privilege and Green Flag - rejected takeover offers from Belgium's Ageas in February and March, calling them “uncertain, unattractive” and “highly opportunistic”. Ageas subsequently confirmed that it is no longer interested in making a bid for Direct Line. 

Elsewhere, the founder and chief executive of one of Scotland's most successful financial technology firms has said it drives him "nuts" that the company has no clients in this country.

READ MORE: Talk of cost cuts makes uncomfortable reading for Direct Line staff in Scotland

Gordon McArthur was speaking after Beeks Financial Cloud posted a hefty 25% increase in revenues and a much larger surge in profitability for the six months to the end of December. 

“We have customers everywhere apart from Scotland," Mr McArthur said. "It drives me nuts but we have never had a customer in Scotland."

Based in Renfrewshire, Beeks employs more than 100 people and has been listed on London's AIM (Alternative Investment Market) since 2017. The company specialises in providing cloud computing and connectivity to financial markets.