EMCC European Monitoring Centre on Change

Royal Bank of Scotland

Company/Organisation:
Royal Bank of Scotland

Geographic Location

Country: United Kingdom
Location of affected unit(s): UK-wide

Company

Sector: Financial services
Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
Number Employed: 106000

Employment Effects

Announcement Date: 10-02-2009
Planned Job Reductions min: 6800
Planned Job Reductions max: 6800
Type of Restructuring: Internal restructuring
Direct Dismissals: 2300

Additional Information

Royal Bank of Scotland has announced that it is to cut 2,300 of its 106,000 UK jobs. The job cuts will come from amongst back office staff rather than customer facing employees, and they are being made as the bank attempts to reduce its costs. As of 15 February 2009 the bank has not announced when or at which sites these jobs will be lost.

Update: 7 April 2009: Royal Bank of Scotland has announced that it is to cut a further 4,500 jobs in the UK. The job losses will be based in the firm's back office operations. The location of the job losses have not yet been announced by the firm, and it is likely that the location of the job losses and the number of compulsory redundancies involved will be determined at local levels after negotiations with trade unions. The announced job losses are a result of financial problems that the firm has faced over the previous 6 months. A spokesperson for the UK general trade union Unite stated,

'Unite is appalled that thousands of people, who form 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.'