RBS to cut 2,600 jobs in the UK

11 May 2010

The Royal Bank of Scotland (RBS) has unveiled plans to reduce its workforce in the UK by 2,600.

According to the banking institution, many of the jobs are to be cut from the insurance division over the course of the next year.

A further 600 positions are to be removed from RBS’ retail business at its head offices in London and Edinburgh.

The insurance arm of RBS includes a number of smaller businesses such as Churchill and Direct Line.

An unnamed RBS spokesman told the Wall Street Journal: “We will do all we can to support our staff through this process and do everything possible to keep compulsory redundancy to an absolute minimum.

“So far the job losses we've announced to date have resulted in fewer than one in four people being made compulsorily redundant."

The financial services provider is making the cuts in order to meet conditions imposed by the European Union.

RBS is undertaking the reduction to its workforce after its reliance on state financial aid to survive the financial crisis led to it becoming 83 per cent owned by the taxpayer.

By Jim Ottewill

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development