RBS reveals plan to axe 2,300 posts
TROUBLED banking giant Royal Bank of Scotland is to cut 2,300 jobs from among its back office staff.
The bank – which is now 70% owned by the government after declaring a huge credit crunch loss – employs more than 10,000 people in the North West – around half of whom are based at its hub in Manchester.No indication was given to which locations would be affected.
RBS, which owns NatWest, said it would seek to keep compulsory redundancies to a minimum, and that no customer-facing staff would be affected.
In a statement RBS UK chief executive Alan Dickinson said he recognised “that any news of this nature is unwelcome at any time”.
“It is essential, however, that we consistently review our business to ensure that we are able to operate as efficiently as possible, especially in the current economic circumstances,” he added.
RBS announced 3,000 job cuts in October, and said last month it expects to make an annual loss of between £7bn and £8bn for 2008. It is also set to write down the value of assets, largely related to its ill-fated takeover of Dutch rival ABN Amro in 2007, by up to £20bn.
Trade union chiefs expressed fury at the announcement. Derek Simpson, leader of United said the cuts mark: “a disastrous day for staff,” and pledged to fight any compulsory redundancies.
The redundancies camee hours after former RBS chief executive Sir Fred Goodwin and chairman Sir Tom McKillop were hauled before the Treasury Select Committee in the House of Commons to explain the banking crisis.
Along with the former bosses of HBoS,
