RBS expected to shed 30,000 more jobs

RBS to shed more jobs.Picture: Jane Barlow
RBS to shed more jobs.Picture: Jane Barlow
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Royal Bank of Scotland is expected to announce next week it is to shed 30,000 more jobs.

The move comes as the Bank warned it will report a significant loss for 2013 with analysts expecting a pre-tax loss for last year of £7bn-£8bn.

It is gearing up for further job cuts as it prepares to focus on the high street and withdraw from riskier investment banking activities.

The bank, which is 81 per cent owned by the taxpayer, has already slashed 40,000 jobs since it was rescued by the government in 2008.

It now aims to cut up to 30,000 more posts by offloading parts of its international business and slashing its investment banking division.

The bank currently employs 120,000 staff and is expected to focus on retail customers, small business and larger corporations.

RBS which also owns NatWest and Ulster Bank, will make heavy cuts to its 11,000 investment bank staff as it retreats from US and Asian markets.

It also is expected to sell its American retail bank Citizens, shedding a further 18,000 jobs – the vast majority of which will be in the US. RBS will also separate its Williams and Glyn’s bank, which employs about 4500 people, from the group next year.

In a video posted on the RBS website this week, new chief exec Ross McEwan said: “My aspiration is not to run the world’s biggest bank.

“My aspiration is to run the best bank in the UK – nothing to do with size.

“A lot of our costs are old costs related to a big global group that we are not any more.”

Mr McEwan’s broader strategy review, under the codename Project Cook, will result in tens of thousands of jobs disappearing over the next five years.

The bank’s workforce is already one-quarter smaller than the 161,000 people who were employed by it when taxpayers injected £45.5bn to rescue it in 2008.

More than 40,000 people have left RBS many through redundancy, with others leaving as part of the sale of dozens of businesses by Stephen Hester, Mr McEwan’s predecessor.

People close to Project Cook said that Mr McEwan would further shrink RBS’s markets and international banking operations, as well as setting out plans for greater automation of high street banking services.