RBS ‘plans to cut 3,000 jobs’
Friday 14th November 2008, 9:49AM GMT.
Royal Bank of Scotland is reported to be slashing 3,000 jobs.
The BBC reports jobs will go at the bank’s global banking and markets divisions.
No jobs are to be lost at RBS’s British retail banks – which include NatWest.
RBS currently employs 170,000 people internationally – 60 per cent of which work in the UK.
An RBS spokesperson said the reports were very much speculation and no announcement has been made.
She said: “We constantly review our operating model to make sure it is appropriate to the market condition, and take action accordingly.”
Earlier this year the RBS reported a £691 million loss for the first half of the year – as the full effect of the credit crunch hits the bank. it is now expected to report its first ever annual loss.
It has also signed up the government’s bank recapitalisation plan with the state buying £5 billion worth of preference shares and underwriting a £15 billion rights issue – with means the government will have to buy any shares not bought by shareholders.
At 9:23 GMT, the RBS share price was up 5.89 per cent to 55.70p.
The rights issue is priced at 65.5p and a year ago it was at 513.50p.
The speculation of job cuts comes after a week that saw UK unemployment to rise an 11-year high.
BT yesterday announced 10,000 jobs cuts, while Virgin Media, Yell, GlaxoSmithKline and JCB are together to cut some 5,000 jobs.
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