Some 126 employees are at risk of losing their jobs as Newcastle Building Society seeks to reduce costs during a "challenging climate".
The cull will affect management and back-office positions and include staff working in technology roles, a spokesman for the firm told Computer Weekly.
Newcastle Building Society could not specify the exact number of IT staff affected by the decision, but a 90-day consultation process with workers union Unite started yesterday, the spokesman said.
The redundancies are part of the second phase of a two-part "repositioning" programme which intends to rationalise some areas of the business.
"We believe that by operating with a slightly smaller number of branches and reduced levels of staff in certain areas of our business it will allow us to streamline costs and become more efficient," said Newcastle Building Society's chief executive Jim Willens.