RBS to cut 3,000 jobs

14 November 2008 / by Rachel Mason
Royal Bank of Scotland (RBS) is to slash around 3,000 jobs worldwide as it struggles to cope with the global financial crisis.

According to the BBC, RBS, which predicts its first annual loss this year, is to make the cuts within its global banking and markets division, which operates in 50 countries worldwide.

It is thought that some cuts are expected in the UK because RBS employs around 170,000 people in total, and the majority of those – 100,000 – are UK employees.

The BBC's report suggests that job cuts are unlikely to be made at high street branches, either at RBS banks or NatWest, which is owned by RBS.

An RBS spokesperson declined to comment on whether the group would be making job cuts or not, telling the BBC: 'We constantly review our operating model to make sure it is appropriate to the market condition, and take action accordingly.'

BBC business reporter Nick Cosgrove said that RBS is now paying the price for too much mortgage lending in the good times.

"It had too much exposure to the sub-prime market in the United States and it overpaid for the giant Dutch bank ABN Amro at the height of the boom," he said.

The news comes in the same week that BT announced 10,000 job cuts, Virgin Media said it would be letting around 2,200 people go, Yell revealed 1,300 job cuts and official figures revealed an 11-year unemployment high.

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