RBS looks to axe 2700 jobs in UK

Published on Thursday 19 March 2009 09:22

AN RBS boss today said the bank was looking to shed 2700 jobs in the UK as part of a plan to cut costs by £2.5 billion over the next three years - including around 260 in Scotland.

Deputy Chief Executive Gordon Pell also spoke of ex-chairman Sir Fred Goodwin's "immense strengths and skills" – but admitted trying to defend him was "mission impossible".

Mr Pell said he felt "ashamed" at the position RBS had put staff in – 99 per of whom had nothing to do with events leading to the bank's downfall.

The 908,000-a-year deputy chief executive's comments came as he gave evidence to the Commons Scottish Affairs Committee.

"The only announcement that we have made on headcount so far in the UK – which we are in discussion with Unite about and therefore is a matter of public knowledge – is that we are working on plans at the moment to shed about 2,700 people in the core business in the UK," he said.

And he told the MPs: "I know trying to defend Fred is possibly a mission impossible."

But he went on to say that some entries referring to Sir Fred on the Google search engine "recognise his immense strengths and skills".

Mr Pell said he hoped "in retrospect, when the dust has settled we will look at a more sensible story of RBS".

The executive, who began his banking career as a cashier 40 years ago, said 99 per cent of RBS staff had nothing to do with the events that led the bank into Government hands.

"I feel deeply for them and somewhat ashamed of the position we have put them in," said Mr Pell.

He acknowledged his own salary may seem "ludicrous" to MPs but insisted it was "similar to peers in other organisations around the world".

Mr Pell said the subject of a pay rise was not even discussed when he was recently promoted from within RBS to his current position.

"We now probably stand in the cleanest position in terms of remuneration in the world, and that causes me considerable competitive problems," he told the MPs.

MPs are also due to hear later from a senior Lloyds executive about the bank's takeover of HBOS.

Chancellor Alistair Darling will give evidence to the Commons Treasury select committee on the banking crisis this afternoon.