RBS axes Midlands operation
THE Royal Bank of Scotland is to close one of its operations in the Midlands with the potential loss of hundreds of jobs, while a further two operations in the region are under review.
The axing of the Telford operation will be part of a series of cuts by the bank over the next two years which are expected to see 3,500 staff lose their jobs.
The bank, which is 80% owned by the taxpayer, will phase out the Telford office over the next two years before its eventual closure at the end of 2012. The office, in Kendal Court, employs around 500 people and handles credit management and other back-office services.
The staff are expected to be offered redeployment to other offices, notably Birmingham- which is not under threat.
A bank spokesman said: “There are a lot of skilled people at the office and we don’t want to lose them all. A number will be offered redeployment to Birmingham but it will be left up to the individual as to whether they are prepared to move – some may prefer to try something new.”
Operations in Nottingham and Leicester have not been listed for closure, however, their future remains under review.
Three business support centres in Yorkshire – employing more than 1,100 people – did not fare as well.
Centres in Leeds, Harrogate and Bradford have been earmarked for closure although its Rotherham operation will survive the latest round of cuts.
Although the centres facing closure currently employ 1,109 people between them it is not certain that all will lose their jobs as some are expected to take up jobs elsewhere within the banking group.
An RBS spokesman said: “Having to cut jobs is the most difficult part of our work to rebuild RBS and repay taxpayers for their support. We continue to make efficiencies across our business and adjust our plans in line with the divestments we have been required to make by the EU.
“We will do all we can to support our staff, offer redeployment opportunities wherever possible and keep compulsory redundancies to an absolute minimum.”
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The latest announcement from RBS brings the number of people made redundant by the firm since the Government became the majority shareholder to more than 20,000.
Rob MacGregor, Unite national officer, said: “The news that the Royal Bank of Scotland is to cut another 3,500 staff from across the UK is a horror story.
“It will be an especially bitter pill for staff to swallow as RBS has decided to move some of the jobs abroad to the Far East, India and America.
“Just three weeks ago staff were boosted to hear of the £1.1bn half year profit yet today thousands of them are told that they have no future at the bank.”
The Leeds office will close next year while the Harrogate and Bradford offices will close in 2012.
