RBS to cut 200 jobs
by Gill Montia
Story link: RBS to cut 200 jobs
Royal Bank of Scotland is expected to announce up to 200 job cuts in the next few days.
The bank’s leveraged finance department will be affected, together with its real estate lending and securitisation divisions.
All three areas of business have been severely affected by the credit crisis and in addition, the bank’s acquisition last year of ABN Amro has added to overstaffing issues.
Redundancies are expected to be predominently at RBS’s London offices.
The group has also recently faced concerns about its capital ratio (its ratio of indebtedness to liquid assets), which is reported to be the lowest of any bank in Europe, mostly as a result of the ABN acquisition.
The bank recently sold its European consumer finance business to Spanish banking group, Santander, and some analysts are expecting further disposals that could include Angel Trains and Condor Ferries.
Forecasts for job losses in the City resulting from the credit crisis now stand at around 10,000.
Those working in leveraged finance are particularly affected, with recruitment specialists reporting a rise in the number of contacts from this particular specialism.