RBS to shed 3,000 jobs

RBS to shed 3,000 jobs

Royal Bank of Scotland (RBS) is to slash around 3,000 jobs as it takes steps to cope with the crisis in the global banking industry.

It is understood the cuts are to be made within RBS' global banking and markets division, which operates in over 50 countries worldwide, in the next few weeks.

Some cuts are expected in the UK given the bank – which employs 170,000 people in total – has around 100,000 staff in the UK.

The BBC indicated that job cuts were not likely at high street branches, either at RBS banks or at its subsidiary, Natwest.

It is understood that there is little scope to make further cuts at branches.

An RBS spokesperson declined to comment on whether the group would be making job cuts or not. They said: 'We constantly review our operating model to make sure it is appropriate to the market condition, and take action accordingly.'

The cuts are not a surprise considering the actions of peers recently and the well-documented impact the credit crisis and subsequent recession is having on banks.

As part of the banking recapitalisation plan laid out by the government, RBS announced earlier this month that it planned to raise £19.7 billion of capital, net of expenses, by placing an open offer of £15 billion new ordinary shares, underwritten by the UK Treasury, and an issue to the Treasury of £5 billion of preference shares.

The group has also scrapped its dividend, adding that it hopes to resume dividend payments by 2010.

This morning shares in RBS were ahead in-line with the rest of the FTSE 100, up 4.6% at 55p, by 08:43am.

CITYWIRE.CO.UK