RBS cuts workers to cut costs
(9 April 2009 – UK) Royal Bank of Scotland (RBS) has announced that it will lay off another 9000 jobs by 2011 in a bid to cut £2.5 billion annually within the next three years.
The plan could affect up to 9,000 Group Manufacturing roles globally, including 4,500 in the UK, over the next two years.
The planned UK cuts are 10 percent of its manufacturing division, which currently employs 45,000 people in back office operations, purchasing, IT and property management.
RBS, however, said that the actual number of jobs lost is expected to be lower, in a bid to keep compulsory redundancies to a minimum.
The bank indicated that a redeployment programme has already identified 650 new job opportunities in the UK and the impact will also be reduced through natural turnover and less use of agency staff.
The business plan, which involves a number of other cost-saving initiatives including moving to a common technology platform, will help RBS achieve its target of reducing annual costs by £2.5bn within the next three years.
Stephen Hester, chief executive of RBS, said that the bank’s new strategy is to restore itself to standalone strength as soon as practicable.
From this, RBS wants the Government to be able to realise value from its investment in RBS. To do so RBS needs to cut costs, as in all businesses, given the current recession, Hester added.
The planned UK cuts are 10 percent of its manufacturing division, which currently employs 45,000 people in back office operations, purchasing, IT and property management.
RBS, however, said that the actual number of jobs lost is expected to be lower, in a bid to keep compulsory redundancies to a minimum.
The bank indicated that a redeployment programme has already identified 650 new job opportunities in the UK and the impact will also be reduced through natural turnover and less use of agency staff.
The business plan, which involves a number of other cost-saving initiatives including moving to a common technology platform, will help RBS achieve its target of reducing annual costs by £2.5bn within the next three years.
Stephen Hester, chief executive of RBS, said that the bank’s new strategy is to restore itself to standalone strength as soon as practicable.
From this, RBS wants the Government to be able to realise value from its investment in RBS. To do so RBS needs to cut costs, as in all businesses, given the current recession, Hester added.
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