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RBS planning up to 2,300 job cuts | |
(40 minutes later) | |
Royal Bank of Scotland (RBS) has said it will cut up to 2,300 jobs as it restructures the business. | Royal Bank of Scotland (RBS) has said it will cut up to 2,300 jobs as it restructures the business. |
The jobs will be lost from its back office operations across the UK. | The jobs will be lost from its back office operations across the UK. |
RBS said it hoped to keep compulsory redundancies "to a minimum", and said that there would be no cuts among its customer facing staff. | RBS said it hoped to keep compulsory redundancies "to a minimum", and said that there would be no cuts among its customer facing staff. |
The bank needed a government bail-out last year. In exchange for £20bn of public funds, the government now has a stake of almost 70% in the lender. | The bank needed a government bail-out last year. In exchange for £20bn of public funds, the government now has a stake of almost 70% in the lender. |
The cuts represent about 2% of RBS's UK workforce of 106,000 employees. | |
RBS UK chief executive Alan Dickinson said he recognised "that any news of this nature is unwelcome at any time". | RBS UK chief executive Alan Dickinson said he recognised "that any news of this nature is unwelcome at any time". |
"It is essential, however, that we consistently review our business to ensure that we are able to operate as efficiently as possible, especially in the current economic circumstances," he added. | "It is essential, however, that we consistently review our business to ensure that we are able to operate as efficiently as possible, especially in the current economic circumstances," he added. |
RBS shares closed down 4%. | |
Bonus row | Bonus row |
RBS announced 3,000 job cuts in October, and recently said that it expected to make an annual loss of between £7bn and £8bn for 2008. | RBS announced 3,000 job cuts in October, and recently said that it expected to make an annual loss of between £7bn and £8bn for 2008. |
It is also set to write down the value of assets, largely related to its takeover of ABN Amro in 2007, by up to £20bn. | It is also set to write down the value of assets, largely related to its takeover of ABN Amro in 2007, by up to £20bn. |
Former RBS chief executive Sir Fred Goodwin told MPs on Tuesday that he "could not be more sorry" for what had happened to the bank. | Former RBS chief executive Sir Fred Goodwin told MPs on Tuesday that he "could not be more sorry" for what had happened to the bank. |
Speaking before the Treasury Committee, he added that the bonus culture across the whole banking sector needed to be reviewed. | Speaking before the Treasury Committee, he added that the bonus culture across the whole banking sector needed to be reviewed. |
Sir Fred and RBS's former chairman Sir Tom McKillop both resigned from the bank in October of last year. | Sir Fred and RBS's former chairman Sir Tom McKillop both resigned from the bank in October of last year. |
Sir Tom admitted to MPs that his bank's much-criticised purchase of Dutch rival ABN Amro had been a "big mistake". | Sir Tom admitted to MPs that his bank's much-criticised purchase of Dutch rival ABN Amro had been a "big mistake". |
Chancellor Alistair Darling has also entered the recent row over banking bonuses, saying on Sunday that RBS should not reward its staff with excessive bonuses. | |
"I have spoken to the chief executive of RBS, and made it quite clear - and he agrees - that no-one associated with these huge losses should be allowed to walk away with large cash bonuses," said Mr Darling. | "I have spoken to the chief executive of RBS, and made it quite clear - and he agrees - that no-one associated with these huge losses should be allowed to walk away with large cash bonuses," said Mr Darling. |