RBS blames Brussels for preference to cut 2600 some-more jobs

Patrick Hosking & ,}

Royal Bank of Scotland is to cut 2,600 British jobs, bringing to 22,600 the sum series of employees the state-owned lender has strew given the begin of the promissory note crisis.

RBS pronounced that 2,000 jobs would go from the Churchill and Direct Line branded word multiplication homogeneous to a winnow of one in eight and that 600 some-more jobs would be strew from the sell promissory note arm. The ultimate cuts paint the initial big pursuit rebate plan by any association given the ubiquitous election. About 16,600 UK jobs have right away been strew by RBS, that is 84 per cent owned by the Government, nonetheless it has singular mandatory redundancies to one in 4 of departures.

RBS pronounced that concessions to the European Commission required to validate for UK state assist were obliged for accelerating the pursuit losses. RBS pronounced it had to hope for for the sale of the word arm, that contingency take place by 2013. Analysts hold that it could fetch as majority as 6 billion, nonetheless new unsatisfactory formula might trim the expected proceeds. Last year the handling increase collapsed from 626 million to 66 million since of an scarcely high series of damage claims and inauspicious weather. In the initial entertain of this year it plunged to a loss of 50 million.

RBS will additionally need fewer people in the sell promissory note head bureau since it has been systematic to sell 316 branches as piece of the European Commission settlement.

The bank has nonetheless to exhibit where the pursuit cuts will tumble but the main practice centres in word are in Bromley, Kent, Glasgow, Leeds and Bristol. In sell banking, RBSs offices in London and Edinburgh see expected to bear the brunt of the reductions.

Stephen Hester, the arch executive, warned last week that there would be some-more pursuit waste to come. Last year he affianced to find 2.5 billion in cost assets as he worked to revive the bank to health after the near-destruction in 2008.

An RBS mouthpiece said: We are operative tough to reconstruct RBS in sequence to pay off taxpayers for their support, and carrying to cut jobs is the majority formidable piece of this process. We will do all probable to keep mandatory excess to an comprehensive minimum. So far, the pursuit waste weve voiced have resulted in fewer than one in 4 people being done compulsorily redundant.

Shares in RBS surged by fourteen per cent to 51p among a ubiquitous upgrading of bank shares in the arise of agreement on an EU monetary fortitude package.

Rob MacGregor, of the Unite traffic union, said: This is a harmful blow for a dedicated workforce, that has worked really tough to spin around the fortunes of RBS following a little catastrophic decisions by the prior management.