Another 3,500 jobs to go at RBS

Royal Bank of Scotland is axing another 3,500 jobs under plans to more than halve the bank's administration centres across the UK, it was announced today.









Part-nationalised RBS said the job losses would go across back office and IT functions in the business services arm - coming on top of the division's 9,000 job cuts announced last year.



The bank, which is 83% owned by the taxpayer, will close 12 of its business services centres across the UK and put three under review.



RBS said the latest jobs cull would start next year and run through to the end of 2012.







Today's UK jobs blow comes just a week after RBS revealed that 14 of its 27 offices in the Churchill and Direct Line insurance arm were being axed.



Trade union Unite described the announcement as a "horror story".



Rob MacGregor, Unite national officer, said it would be a particularly "bitter pill for staff to swallow" as RBS has decided to move 500 of the jobs offshore to the Far East, India and America.



He said: "The scale of the cuts announced today beggars belief and staff across the country today will be left reeling from this news."



All the 3,500 cuts announced will affect the bank's UK administration workforce. RBS said it had almost completed the 9,000 job losses first revealed last year, of which 4,500 were in the UK.



The business services division previously employed around 45,000 globally.



The bank will retain 10 back office centres, but those in the following sites will be affected: Leeds, Bolton, Enfield, Harrogate, Bristol, Borehamwood, Liverpool, Milton Keynes, Plymouth, Telford, Bradford and Norwich.



RBS said around a third of the job cuts come as a direct result of the sale of 318 branches to Santander, which it was ordered to offload by the European Commission.



RBS said: "Having to cut jobs is the most difficult part of our work to rebuild RBS and repay taxpayers for their support.



"We continue to make efficiencies across our business and adjust our plans in line with the divestments we have been required to make by the European Union."













In Scotland, the company's centre in Greenock and Drummond House in Edinburgh will see an increase in jobs over the next two years as a result of the announcement today.











Scottish Secretary Michael Moore said: "There is no ducking the fact that this is unwelcome news for RBS and those whose jobs are affected.



"It follows other poor news from the Scottish financial services sector and other employers recently. Along with ministerial colleagues, I am actively engaged in efforts to strengthen the sector and the economy as a whole.



"We are in contact with the chief executives of RBS and other affected companies in Scotland. The industry has gone through many changes and has a great underlying strength, but is clearly adapting to new circumstances. We are all working to ensure it will emerge stronger and more secure for the future."



Meanwhile, Scottish Finance Secretary John Swinney said: "We understand that the overall impact of today's announcement for Scotland in terms of employment is neutral, although we are of course very concerned for RBS employees who may be adversely affected and their families."



Mr Swinney welcomed news that there were no closures in Scotland, and added that the Scottish Government would continue to liaise with the company "to ensure that employment opportunities in Scotland are maximised".



He added: "The Scottish Government will continue to support Scotland's financial services industry in maintaining its real strengths and in adapting to change."

Start your day with The Independent, sign up for daily news emails
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

Laughter, but no tears, as Letterman takes his bow after 33 years

Veteran talkshow host steps down to plaudits from four presidents
Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

Hozier's 'blasphemous' song takes Novello award

Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

Join the tequila gold rush

The spirit has gone from a cheap shot to a multi-billion pound product
12 best statement wallpapers

12 best statement wallpapers

Make an impact and transform a room with a conversation-starting pattern
Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

Paul Scholes column

Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?