RBS Cuts Thousand of Jobs

The biggest government owned bank of Britain, the Royal Bank of Scotland (RBS) has said that it is going to cut 4,800 jobs including 3,500 at the investment bank with most of them taking place this year.

In a statement, RBS said that it will sell or shut the cash equities, mergers advisory, corporate broking and equity capital markets operations, and they are in talks with a number of potential buyers for the operation. Some other reports also said that about 1,300 jobs are also to be eliminated in other areas, including Ulster Bank and corporate lending.

CEO of the RBS Group, Stephen Hester in a memorandum said that they are taking out of business areas that are unbeneficial and where they have weaker client positions than the market leading group of competitors. Hester said that they are also scaling back resources in different sectors where market developments threaten their ability to fund themselves sustainably and beneficially.

Some of the experts expect that thousands more job cuts may be necessary if the bank does not find customers for the divisions it is looking to dispose of and is forced to shut them down.

General secretary, Larry Broderick of the Irish Bank Officials Association, said that their members feel very strongly that employees of Ulster Bank are continuing to suffer for the mismanagement, ineffectiveness and greediness of senior management in the RBS that has been nationalized in all but name, as a result of the biggest collapse in the history of the British corporation.

The investment bank of RBS had been the major player and growth engine, which produced an average return on equity of 19% and carried more than $15.3 billion of profits since 2009 but it has been hit hard by a fading economy and more costly regulatory changes.

**********************************************

The Views and Opinions Expressed by the author are his or her opinions only and do not necessarily reflect those of this Web-Site or its agents, affiliates, officers, directors, staff, or contractors. The author at the time of this article did not own any shares or receive any consideration financial or otherwise from any company or person mentioned or referred to in the article.

Tags: Britain, British corporate, investment bank, Irish Bank Officials Association, jobs, RBS, Royal Bank of Scotland, Stephen Hester, Ulster Bank