More job cuts as RBS shrinks investment arm

RBS to cut 2,000 roles globally – including some in the UK – in investment arm after a comprehensive review of the business

RBS will cut jobs in its investment arm following a comprehensive review of the business, with reports of 2,000 roles to be made redundant globally – including some in the UK.

RBS is cutting some of its investment products lines to focus on its strongest offering.

According to reports, the decision will see 2,000 of the investment business’s staff cut, which is about 20% of its total.

In a message sent to staff outlining the strategy, RBS said: “Throughout the review process, we have had to make tough decisions about the number of people needed to make this new strategy a success. 

"Regrettably, there will be job losses in areas that we are exiting or streamlining and it may take some time before we can provide clarity to those affected.”

According to an IT worker that has previously worked in RBS's investment bank, there are a lot of contractors in place and the bank also has a captive IT operation in India.

As recently as last month, RBS’s retail banking operation announced 1,400 job cuts with no customer-facing roles to be included, meaning IT staff are likely to be affected. 

The cuts, most of which are expected to be in RBS's Edinburgh offices, are planned for the next two years.

The bank, which is majority owned by the government following a bailout, has already made 35,000 job cuts since the credit crunch.

This news came as chancellor George Osborne forced RBS boss Stephen Hester to step down, with the government-owned bank expected to return to the private sector through a sell off.

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