RBS in talks over 9,000 job cuts

08 April 2009 / by Rebecca Sargent
Royal Bank of Scotland (RBS) announced yesterday that it had begun talks over further job losses, which could total 9,000.

Half of the job cuts are expected to take place in the UK over the next two years, and will affect manufacturing roles including technology, group property, call centres and group purchasing.

However, according to RBS, the actual number of job losses will be fewer than the number reported, as a result of redeployment initiatives, which have already created 650 new job opportunities.

Commenting, Stephen Hester, chief executive of RBS, said: "We have set a new strategy for RBS to restore the bank to standalone strength as soon as practicable.

"From this we want the Government to be able to realise value from its investment in RBS. To do so we need to cut our costs, as in all businesses, given the current recession.

"Unfortunately this means taking difficult decisions about jobs as well as taking many other cost reduction actions."

The part nationalised bank is in talks with the union Unite, whose national officer Rob MacGregor said: "The news that 4,500 RBS staff in the UK are to lose their jobs is truly devastating.

"Unite is appalled that thousands of people, who formed the backbone of the RBS operations, are to be made redundant. These employees are totally blameless for the current position which RBS is in, yet they are paying for the mistakes at the top of the bank."

Speaking of the Government's part, he added: "The Government must defend jobs and act urgently to put in place a clear programme of action to protect jobs in this country.

"This bank, which is majority owned by the taxpayer, must not be allowed to shed jobs and leave people on the dole."

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