Royal bank of Scotland has begun the process of
shrinking its IT operations, confirming 700 job cuts in the
UK.
The move follows an announcement last month that it was to cut
9,000 jobs globally, including 4,500 in the UK. The 700 cuts are in
IT and property units.
The bank is cutting jobs in its manufacturing division, which
includes the bank's IT operations. The division spent £1.75bn on
technology services and support last year.
RBS has been looking at ways to cut costs through common IT
since it acquired Dutch bank ABN Amro. It aims to cut annual costs
by £2.5bn within the next three years, partly by moving the company
to a common technology platform.
Rob MacGregor, Unite national officer, said, "Since the
announcement by the bank in April that 4,500 people will be made
redundant, staff across the company have been uncertain about their
future. This confirmation for employees in the IT and property
divisions that they will be the ones hit is devastating."
Barclays announced another round of IT job cuts last week in an
attempt to "increase operational efficiency".
An internal Barclays e-mail revealed that the bank is planning
to cut an extra 350 UK technology jobs.
Lloyds TSB, which acquired HBOS last year, announced 650 jobs
this month.
Keith Brooks, general secretary at union Unite, who represents
Barclays workers, said, "I do not know when banks are going to stop
[cutting jobs]. There is nothing on the horizon to suggest it will
stop. All I can see is further hurdles and more job cuts."
Ralph Silva, analyst at Towergroup, said banks are already
operating with the minimum number of workers needed.
Nevertheless, up to 7% of IT workers in banks could lose their
job this year. "If they have to make cuts, they will close entire
businesses," he said.