RBS Cuts 1,000 IT Jobs

The Royal Bank of Scotland (RBS) said on Thursday it is to cut 3,500 jobs from its business centres across the UK, including 1,000 IT support roles and 2,500 in support services.

The cuts bring the bank’s total number of UK redundancies to 20,600 since RBS began a cost-cutting scheme in 2009, following its part-nationalisation in 2008. About 1,500 of the cuts are related to RBS’ sale of 318 branches to Spain’s Santander, a move ordered by the European Commission.

The other cuts will affect RBS’ 12 business support centres around the UK. Two of these are to be shut, RBS said.

Cost-cutting drive

So far 9,000 of the redundancies have come from RBS’ business centres, largely affecting call centres and IT departments. The bank is aiming to cut annual costs by £2.5bn.

Union Unite called the move “horrific” and noted that the cuts were announced a month after RBS announced profits for the first half of the year of £1.1bn.

“The scale of the cuts announced today beggars belief and staff across the country today will be left reeling from this news,” said Unite national officer Rob MacGregor, in a statement. “We continue to see a financial services sector which thinks the skills and expertise of it’s staff are a disposable asset with scant regard for the high level of service these very same staff provide to their customers.”

The bank said it is to continue reviewing its business services operations with a view to making more job cuts.

Part nationalisation

RBS was part-nationalised two years ago, following heavy losses during the depths of the world economic crisis, and the state currently holds an 84 percent stake in the bank. RBS is also heavily taxpayer-supported via the asset protection scheme.

“Having to cut jobs is the most difficult part of our work to rebuild RBS and repay taxpayers for their support,” RBS stated. “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 EU.”

The bank said it would offer staff other jobs where possible and keep compulsory redundancies to a minimum.

Other large companies making significant UK job cuts this year include HP, Fujitsu, Ericsson and MI5.