RBS to cut 9,000 jobs
7 April 2009
Royal Bank of Scotland has announced plans to cut 9,000 jobs over the next two years as the bank looks to £2.5bn over the next three years. 4,500 of these jobs will be from the UK.
The bank was bailed out by the government last year and is now 70 per cent government owned.
The jobs will go from the group’s ‘manufacturing’ division which provides support for the bank's customer-facing businesses, including back office operations, purchasing, IT services, and property management.
Last year this division employed 45,000 people worldwide, and 27,000 in the UK. According to the Independent newspaper, 2,700 jobs will be made redundant this year.
RBS Chief Executive Stephen Hester said the cuts were inevitable to get the bank back on its feet.
“Unfortunately, that means taking difficult decisions about jobs as well as taking many other cost reduction actions,” he said.
The RBS reported a UK-record loss of £24.1bn for 2008 and failed in its bid to raise funds through the release of more shares.
Share prices have plummeted since the credit crisis hit and investors have shied away purchasing options in the bank.
The RBS has consulted with Scottish MPs on how to reduce the impact of these job cuts on the community.
For more information, please go to see the Independent website.
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