RBS blames EU for 3,500 job losses

Steve Dinneen
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Royal Bank of Scotland (RBS) yesterday blamed the EU for swingeing job cuts that will clear out 3,500 support staff.

The bank released a statement pointing to EU rules for the cuts. A statement read: “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 fresh wave of efficiency savings follow 9,000 job losses last year. RBS had warned more cuts were on the way but the fresh figure is around a third higher than expected, largely due to the forced sale of 318 branches to Santander.

City A.M. understands the losses will affect support staff, with IT staff bearing the brunt. No front-facing staff will lose their jobs.

A small number of jobs –roughly 500 – will be outsourced abroad.

The bank’s biggest union Unite yesterday branded the job cuts a “horror story”.

Rob MacGregor, Unite national officer said: “It will be a specially bitter pill for staff to swallow as RBS has decided to move some of the jobs abroad to the Far East, India and America.

“Just three weeks ago staff were boosted to hear of the £1.1bn half year profit yet today thousands of them are told that they have no future at the bank.

“Unite is appalled that this 84 per cent tax payer supported institution has since 2009 under the banner of a strategic review cut 21,500 staff.

“The scale of the cuts announced today beggars belief and staff across the country today will be left reeling from this news.”

The bank responded that job cuts are “the most difficult part of our work” and said it would continue to support those affected.