Memo: RBS UK investment division warned more layoffs to come
RBS has announced 27,500 layoffs worldwidel; 21,200 alone in the UK
Since credit crisis, European banks have said 270,000 employees must go
Staff at Royal Bank of Scotland’s UK investment banking and treasury divisions were warned this week of more job cuts to come, according to an internal memo obtained by CNN.
The potential redundancies are part of the bank’s plan to trim tens of thousands of roles.
Since receiving the biggest bail out in history, RBS has announced 27,500 layoffs worldwide – of which 21,200 are in the UK.
Bad time to be a banker: More layoffs
The news comes days after official figures put the number of unemployed across Great Britain at 2.51 million. RBS is 84% owned by taxpayers.
The following is an email sent to all employees in RBS’s Markets division across Europe, Middle East and Africa from Peter Nielsen, Global Head of Markets, on Thursday.
“As you are aware, we continue to review our business to ensure Markets aligns its resources and strategy effectively.
“We are focused on building a high performing business and need to optimise our resources in line with this and continue the drive for efficiencies.
“As a result of this ongoing focus I have asked my ManCo [management committee] to review their business operating model and we are now proposing further headcount reductions across the Markets and GBM Treasury group, which will impact the UK.
“Our plans are subject to consultation in the UK and I wanted to inform you that this commenced this week.
“Where we need to make role reductions we will work with the employee representative bodies, from both the Employee Consultative Body (ECB) and UK Staff Council (UKSC), to explain the roles that need to be reduced and consider their comments and suggestions.
“The exact timing of the process will depend on discussions with the ECB and UKSC but our aim is to be able to provide clarity to you in the coming weeks.
“I appreciate that these can be unsettling times but I would ask you to continue to focus on execution and stay close to our clients.”
RBS, whose ill-fated acquisition of ABN Amro left it nursing $2.3 billion worth of Greek government bonds, is just one of a number of banks to significantly trim headcount in the past three years.
Since the onset of the credit crunch European financial institutions have said 270,000 posts must go. HSBC has said it will slash 30,000 by 2013, while Barclays will trim 3,000.
A spokeswoman for RBS declined to comment on the document and its contents.