RBS is to make a further 2,600 job cuts, most of which will come from its insurance business.
The bank announced it would have to make the cuts after the European Commission demanded it sell some of its businesses and branches to protect competition in the industry following its government bail-out.
RBS now plans to sell its insurance business – which included Churchill, Direct Line, Green Flag and Privilege – by 2012.
A spokesman told Personnel Today: “To do that we have to get costs down and that means losing jobs. We will be, where possible, doing that through voluntary measures and natural attrition. Compulsory redundancies will be a last resort.”
The bank is also being forced to sell 318 of its branches, and 600 of the 2,600 job losses will be in the retail head office function.
The jobs will be lost over the next year. Staff were informed of the decision today.
The 84% state-owned bank has already axed 23,000 jobs since the bail-out, with one in four of those having been compulsory cuts.
The spokesperson added: “We are working hard to rebuild RBS in order to repay taxpayers for their support, and having to cut jobs is the most difficult part of this process.”
But Unite union condemned the job cuts as a “devastating blow” for the RBS workforce.
Rob MacGregor, Unite national officer for finance, said: “Taken together, this is a devastating blow for a dedicated workforce which has worked very hard to turn around the fortunes of RBS following some disastrous decisions by the previous management.”
