RBS planning to cut 900
jobs to reduce costs: sources
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[June 21, 2016]
By Andrew MacAskill
LONDON (Reuters) - Royal Bank of
Scotland is planning to cut about 900 jobs in Britain, sources
familiar with the process said, taking the total number of layoffs
in the last four months to around 5 percent of the bank's British
The latest cuts at RBS are in information technology and back office
positions that support the commercial, retail and private bank, the
RBS, which is 73-percent state-owned, is in the midst of a major
restructuring aimed at returning the bank to profit after eight
straight years of losses. The Edinburgh-based bank was rescued with
a 46 billion-pound ($67.82 billion) state bailout during the 2007-09
The bank confirmed some staff would lose their jobs but declined to
give specific numbers, pointing to its long-stated ambition to
shrink from the world's biggest bank by assets into a much leaner,
UK-focused commercial and retail bank.
"We understand how difficult this is for our staff and will be
offering as much support as we can including redeployment to other
roles where possible," the bank said in a statement to Reuters.Chief
Executive Ross McEwan has already cut thousands of jobs partly in
response to low interest rates and slowing economic growth which
have pushed RBS and several of its UK rivals to take out costs. RBS
had 64,000 staff in Britain as of December 2015.
The RBS staff affected by this latest round of redundancies work in
cities across Britain, including London, Edinburgh, Manchester and
At least 100 jobs are being transferred to India, where people can
perform the same role on lower salaries, the sources said.
The latest cuts mean RBS has axed at least 2,700 staff across the
country since the beginning of March. Most layoffs have fallen on
its branch network, where the bank had earlier announced plans to
cut about one in every 10 jobs in 2016.
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The City of London business district is seen through windows of the
Royal Bank of Scotland (RBS) headquarters in London, Britain
September 10, 2015. REUTERS/Toby Melville
More cuts are expected to be announced in the coming months, the sources said.
The RBS cuts come just days before Britain heads to the polls to vote on
membership of the European Union. Some banks have warned they may have to cut
even more jobs if the country opts out of the 28-nation bloc.
Up to 100,000 financial services jobs could be lost over the next five years if
Britain votes to leave the EU, according to a study commissioned by trade body
RBS Chairman Howard Davies last month said the bank was preparing for a
potential phase of economic instability following a referendum on Britain's
membership of the EU.
(Reporting By Andrew MacAskill, editing by Sinead Cruise and Jane Merriman)
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