RBS

The move will see employees working in the bank’s information technology and back office operations, which support its commercial, retail and private banking services, losing their jobs, Reuters reported quoting sources familiar with the matter.

The latest job cuts will result in 5% reduction the bank’s British workforce in the last four months.

The state-owned lender is undertaking a major restructuring of its business to return to profit after posting losses for eight consecutive years. Currently, the UK government owns 73% stake in the bank.

The bank said in a statement to the publication: "We understand how difficult this is for our staff and will be offering as much support as we can including redeployment to other roles where possible."

RBS chief executive Ross McEwan has already reduced the bank’s staff by thousands in the wake of low interest rates and slowing economic growth.

As of December 2015, RBS employed 64,000 people in Britain.

The latest layoffs will affect the RBS staff working in cities across Britain, including London, Edinburgh, Manchester and Birmingham.

A bank’s spokeswoman was quoted by BBC as saying: "As RBS becomes a smaller UK-focussed bank, we are restructuring our support services to better align with the business we are becoming. These changes unfortunately mean some job losses.

"We understand how difficult this is for our staff and will be offering as much support as we can, including redeployment to other roles where possible."

Besides, the bank plans to transfer a minimum of 100 jobs to India to get the tasks done at lower salaries, according to the sources.

With the latest employee retrenchment, RBS has shrunk its workforce by at least 2,700 in UK since March this year. Most of the cuts affected employees working at its branches.

Earlier, the bank had planned to eliminate about one in every 10 jobs at its branches in 2016.


Image: RBS Building, 250 Bishopsgate, London. Photo courtesy of RBS.