RBS to axe a further 3,500 jobs

Published on Thursday 2 September 2010 13:15

THE Royal Bank of Scotland is cutting another 3,500 jobs, it was announced today.

The Edinburgh-based bank said the job losses would go across back office and IT functions in the business services arm - coming on top of the division's 9,000 job cuts announced last year.

The bank, which is 83% owned by the taxpayer, will close 12 of its business services centres across the UK and put three under review.

The administration centres earmarked for closure or downsizing are all in England.

In Scotland, the company's centre in Greenock and Drummond House in Edinburgh will see an increase in jobs over the next two years as a result of the announcement today.

RBS said the latest jobs cull would start next year and run through to the end of 2012.

Since 2009, RBS has axed more than 20,000 jobs, and the latest announcement follows a decision in May to shed 2,600 posts at its insurance and retail banking operations.

RBS said around a third of the job cuts come as a direct result of the sale of 318 branches to Santander, which it was ordered to offload by the European Commission.

RBS said: "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 European Union."

RBS currently employs around 160,000 staff globally, the majority based in the UK.

Trade union Unite described the announcement as a "horror story".

Rob MacGregor, Unite national officer, said it would be a particularly "bitter pill for staff to swallow" as RBS has decided to move 500 of the jobs offshore to the Far East, India and America.

He said: "The scale of the cuts announced today beggars belief and staff across the country today will be left reeling from this news."

Yesterday another Edinburgh-based company, Standard Life, announced it was cutting 600 jobs at its headquarters.