The bank announced today it would no longer need the huge building on the Rainton Bridge Business Park or the new offices it is building at its Newcastle HQ.

The bank had planned to have 2,000 people working at Rainton by the end of the year and as many as 3,500 staff based there in the long-term.

But the firm announced today the plan had been ditched. The company will retain its offices on the Doxford International business park.

"The reduced size of the company means that it does not need as much office space as it currently occupies, or was projected to need," said a statement this morning.

"It has, therefore, been decided that Northern Rock will seek to sell, or offer for rent, the new office space it is developing at Rainton Bridge near Sunderland and Gosforth, Newcastle upon Tyne.

"The company will retain its two main office sites in Gosforth and Doxford, as well as its local and national branch and sales network."

The statement came as hundreds of Northern Rock workers were discovering their fate with the consultation period on compulsory redundancies running out.

The troubled bank announced last month that it was to make 1,300 people redundant from its sites across the region.

The company, which employed about 1,200 at its site in Doxford, said 800 job losses would be compulsory, with 500 expected to be voluntary.

The bank started a 30-day consultation period with staff affected by the cuts – a period which expired today.

Where possible, staff at risk of redundancy will be given the chance to move to a new role within the business.

Northern Rock executive chairman Ron Sandler said: "Confirming job losses is never easy, but our staff have been kept well informed and the need to contract the size of the company is well understood.

"This remains a very tough time for our staff, but the restructure of the company is nearing completion and we are now in the final phase of this difficult process.

"We have worked hard with Unite and other employee representatives to minimise the total number of job losses."