RBS to cut 3,500 jobs
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RBS is set to cut 3,500 jobs nationwide and to shut down a dozen processing offices in the wake of the recent branch sell-off.
The majority taxpayer-owned bank has told 3,500 staff that 12 processing offices in the UK will be shut down. A third of the job losses are as a result of RBS’ sale of 318 branches last month to Santander.
Unite national officer Rob MacGregor says the job cuts are a “horror story” for RBS employees in light of the bank’s £1.1bn profit announcement last month.
This news comes after Standard Life revealed it was cutting 500 jobs under its structural review.
As well as the 12 planned office closures, the bank is reviewing a further three offices in the UK. RBS has also announced plans to offshore upwards of 500 roles to its existing non-customer facing technology operations in US, India and the Far East.
MacGregor says: “Unite is appalled that this 84 per cent tax payer supported institution has since 2009 - under the banner of a strategic review - cut 21,500 staff.
“The scale of the cuts announced today beggars belief and staff across the country today will be left reeling from this news. We continue to see a financial services sector which thinks the skills and expertise of it’s staff are a disposable asset with scant regard for the high level of service these very same staff provide to their customers.”
RBS says: “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.”
RBS will be closing offices in Leeds, Bolton, Enfield and Harrogate in 2011 and will shut down another eight in Norwich, Bradford, Telford, Plymouth, Milton Keynes, Liverpool, Bristol and Borehamwood in 2012. The Leicester, Southampton and Nottingham centres are under review.
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Readers' comments (12)
Ancient Wisdom...is a mortgage broker in N3. | 2 Sep 2010 1:35 pm
Well what did everyone expect - selling off branches and keeping staff?
RBS still have a long way to go - after selling up, there are no other roads to go down - and they owe alot of money.
I recently came back from Edinburgh for a holiday, RBS branches everywhere and they still spent millions sponsoring the Edinburgh Tattoo - with RBS staff in the VIP boxes spending as if money has gone out of fashion.
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Anonymous | 2 Sep 2010 1:39 pm
No doubt Fred The Shred will help the staff out, I understand that he has a bob or two.
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Mark | 2 Sep 2010 1:43 pm
It seems wrong that the guys at the top make big bonuses after the taxpayer bails the company out and then they close down administration centres as well as sending work to places like India. Its so unfair and things will probably continue to get worse.
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Serval | 2 Sep 2010 1:47 pm
The money for this year's executive bonuses has to come from somewhere.
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John Thomas | 2 Sep 2010 1:50 pm
21,500 jobs cut? How many did they used to employ?!?
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Anonymous | 2 Sep 2010 1:57 pm
Once again UNITE has failed to stand up for the interests of RBS/Nat West staff. They seem ready enough to take on British Airways head to head but fail to protect the rights of bank staff. It is their own members and their families who will feel the brunt of the latest round of cuts, not the so called fat cats who walked away from the sinking ship. There are still Nat West staff swanning around London night clubs, taking champagne trips on the London Eye, travelling in limos at company expense as a 'reward' for performance. But the Union should encourage the company to curb these excesses which, in the current climate, are obscene on public money and then concentrate on defending the ordinary hard working members.
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LifeRepMan | 2 Sep 2010 2:51 pm
1.57pm .....A trip on the London Eye is only £18.90.
A company I once worked for wrote a bond where the broker took a total of £140,000 commission (plus a big marketing allowance offshore that he didnt discloseto client)....
i take it that you have never been entertained in your career?.
Pan, kettle, black.
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Heather A | 2 Sep 2010 2:56 pm
So I think the point here is that with all the bank closures and lay-offs, anyone who banks with RBS would be better to go elsewhere as any standard of service you once got will be non-existent.
Having a family member made redundant from RBS recently, I can tell you that the normal workers are the ones suffering, the bank tellers and customer service folk who dont earn great salaries and work their backsides off day in day out, all due to the 'fatcats' who messed the bank up in the first place.
Get rid of a few of those with their crazy salaries and that will save decent workers jobs!
I
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Stephen | 2 Sep 2010 3:22 pm
I hope they're not going to rely on the intermediary sector to provide them with business. I for one won't be helping after last week they declined a £575k mortgage due to adverse but when the client questioned this with them (he banked with them) the adverse did not exist and they did the mortgage through their direct channel.
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David Todd | 2 Sep 2010 3:58 pm
As per usual RBS losing the plot. If these centers are being closed as they are no longer required. Why has it taken so long however outsourcing to India is a false economy as you will need a new department with almost as many staff to manage the accounts never mind the endless flying back and forward to sort out problems. Just look at any of the other financial institutions that have already gone down that road. It is a bed of roses and not best for their customers interests. Also why are British companies the only ones that pay any attention to the EU. Can you imagine a French Co selling off profitable businesses because the EU said so. I think not.
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