RBS to cut 3,500 jobs in investment bank

The Royal Bank of Scotland (RBS) has said it will cut a further 3,500 jobs, with most of them to happen this year.RBS to cut 3,500 jobs in investment bankThe cuts are part of a reorganisation and shrinkage of its investment bank.

The losses, which will be split between its UK and international offices, come on top of 2,000 cuts announced earlier.

A further 950 jobs are also to go at Irish subsidiary Ulster Bank, split between 350 in Northern Ireland and 600 in the Irish Republic.

RBS’ “wholesale banking” business, which provides services to large clients including investment banking services, will be split into separate “markets” and “international banking” divisions.

The new markets division – which comprises RBS’ main trading activities – will focus on the bank’s traditional strengths of debt, currency and money markets, the bank said in its statement.

The international banking division will provide services for the bank’s biggest clients.

These will include corporate advisory services transferred from its investment bank – such as helping major companies borrow money by issuing bonds – as well as cash management and payments services.

The bank has already shed some 30,000 employees over the last two years, 22,000 of them in the UK.

For a bank that has shed 30,000 jobs over the past couple of years, a further 3,500 departures may not seem massive”

The bank said that it planned to close or sell off other business lines, such as those dealing with shares and stock markets, as well as its business advising companies on mergers and acquisitions.

It is also looking to dispose of its corporate brokerage, Hoare Govett.

The bank is now 82%-owned by the UK government after labour nationalised the bank and injected £45.5bn of taxpayers’ money.

March 15, 2012 · Home Based Jobs · Comments Closed
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