Royal Bank of Scotland today announced 3,500 job cuts over the next three years, as part of a business reorganisation and shrinkage of its investment banking operations.
RBS, a government-owned banking giant in the UK, also plans to reorganise its wholesale businesses into “markets” and “International banking”, besides closure and downsizing of some other select activities, RBS said in a statement.
The bank would exit from cash equities, corporate broking, equity capital markets, and mergers and acquisitions businesses.
“The actions announced today are outlined...will begin immediately, but may take up to three years to implement,” RBS said.
RBS said its wholesale businesses would cater to corporate and institutional clients globally. The bank’s marketing division would focus on its existing strengths in fixed income, foreign exchange, debt financing, transactions services and risk management solutions.
The financial services major said that changes in its wholesale banking operations have been announced to ensure it would continue to deliver against the Group’s strategy announced in 2009.
“At this stage we envisage a further net employment reduction over three years of circa 3,500, split between our UK and non-UK locations, in addition to the approximately 2,000 reduction in staff in GBM in the second half of 2011,” RBS said.
The bank reduced its headcount by 2,000 last year.
According to media reports, it has cut around 30,000 jobs since being bailed out by the government.
”...It is clear that, particularly in the wholesale banking arena, significant new pressures have emerged. The changes we are announcing today seek to ensure that RBS is at the front of the pack in pursuing a strategy that reflects the environment we expect to operate in,” the RBS Group Chief Executive, Mr Stephen Hester, said.
“Our goal from these changes is to be more focused for customers, more conservatively funded, more efficient and with better, more stable returns for shareholders overall,” he added.