RBS cuts one in seven staff
Monday, 02 November 2009 08:09
Royal Bank of Scotland is cutting 3,700 jobs.
In total the lender has cut 19,700 jobs internationally this year - with 10,000 already in the UK - but this round of cuts will be focussed on RBS and NatWest branches, with the bank claiming it has one of the most overstaffed branch networks in the country.
Compulsory reduncancies cannot be ruled out, RBS has revealed, but none would be made before May next year.
Brian Hartzer, RBS chief executive of UK retail, said: "We have 30 per cent more staff carrying out administrative duties per customer than our competitors, and they spend less than half their time dealing with customers.
"We have under-invested in our branches and customer infrastructure at a time when people are changing how they bank and changing what they expect their bank to do for them."
Tomorrow is expected to see a ruling from the European Commission demanding RBS sell off some of its insurance businesses in order to meet state aid rules.
Unions have hit out at the job cuts.
Unite national officer Rob MacGregor said: "For RBS to announce the cut of 3,700 frontline bank staff from their high street branches across the UK is absolute madness.
"Essentially RBS has decided that frontline costs should be cut, to fund the crisis caused by the City bankers."
He added the move to reduce front line clerical branch staff by up to a third was "short-sighted in the extreme, high street banks are busier then ever as customers increasingly seek a trusted friendly local service".
Mr MacGregor claimed the bank was pushing customers towards automated and internet services to make short-term savings and called for RBS management to rethink the decision.
RBS also announced today it was to announce its position over entering the government asset protection scheme by the end of the week.
It could push the state holding of RBS up from 70 per cent to over 80 per cent.
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