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
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Adviser - OTE £24,500

£22500 - £24500 per annum: Recruitment Genius: Inbound and outbound calls with...

Recruitment Genius: Business Development Executive / Sales - OTE £40,000

£18000 - £40000 per annum: Recruitment Genius: This fast growing Insurance Bro...

Guru Careers: Research Associate / Asset Management Research Analyst

£40 - 45k (DOE) + Benefits: Guru Careers: A Research Associate / Research Anal...

The Green Recruitment Company: Graduate Energy Analyst

£20000 Per Annum: The Green Recruitment Company: Summary: The Green Recruitm...

Day In a Page

Turkey's conflict with Kurdish guerrillas in Iraq can benefit Isis in Syria

Turkey's conflict with Kurdish guerrillas in Iraq can benefit Isis in Syria

Turkish President Erdogan could benefit politically from the targeting of the PKK, says Patrick Cockburn
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn or a return to a Labour government

Our choice is years of Tory rule under Corbyn or a return to a Labour government

Yvette Cooper urged Labour members to 'get serious' about the next general election rather than become 'a protest movement'
Singapore's domestic workers routinely exploited and often abused in the service of rich nationals

Singapore's hidden secret of domestic worker abuse

David Cameron was shown the country's shiniest veneer on his tour. What he didn't see was the army of foreign women who are routinely exploited and often abused in the service of rich nationals
Showdown by Shirley Jackson: A previously unpublished short story from the queen of American Gothic

Showdown, by Shirley Jackson

A previously unpublished short story from the queen of American Gothic
10 best DSLRs

Be sharp! 10 best DSLRs

Up your photography game with a versatile, powerful machine
Solved after 200 years: the mysterious deaths of 3,000 soldiers from Napoleon's army

Solved after 200 years

The mysterious deaths of 3,000 soldiers from Napoleon's army
Every regional power has betrayed the Kurds so Turkish bombing is no surprise

Robert Fisk on the Turkey conflict

Every regional power has betrayed the Kurds so Turkish bombing is no surprise
Investigation into wreck of unidentified submarine found off the coast of Sweden

Sunken sub

Investigation underway into wreck of an unidentified submarine found off the coast of Sweden
Instagram and Facebook have 'totally changed' the way people buy clothes

Age of the selfie

Instagram and Facebook have 'totally changed' the way people buy clothes
Not so square: How BBC's Bloomsbury saga is sexing up the period drama

Not so square

How Virginia Woolf saga is sexing up the BBC period drama
Rio Olympics 2016: The seven teenagers still carrying a torch for our Games hopes

Still carrying the torch

The seven teenagers given our Olympic hopes
The West likes to think that 'civilisation' will defeat Isis, but history suggests otherwise

The West likes to think that 'civilisation' will defeat Isis...

...but history suggests otherwise
The bald truth: How one author's thinning hair made him a Wayne Rooney sympathiser

The bald truth

How thinning hair made me a Wayne Rooney sympathiser
Froome wins second Tour de France after triumphant ride into Paris with Team Sky

Tour de France 2015

Froome rides into Paris to win historic second Tour
Fifteen years ago, Concorde crashed, and a dream died. Today, the desire to travel faster than the speed of sound is growing once again

A new beginning for supersonic flight?

Concorde's successors are in the works 15 years on from the Paris crash