RBS plans 900 job cuts

Unite union claims bank is planning to cut IT jobs in London by 40 per cent by 2020

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Royal Bank of Scotland is said to be planning around 900 job cuts at its London office over the next three years.

The BBC reports claims from the Unite union that the bank plans to cut 40 per cent of its permanent IT staff, equating to 650 jobs, plus 230 contractors.

RBS says there has been no consultation about job losses, but it has “shared a direction of travel with Unite which is subject to change.”

Unite national officer Rob MacGregor says: “RBS is continuing with its savage jobs culling program with today’s announcement of a 40 per cent cut in IT staff, totalling nearly 900 staff.

“The decade of slashing jobs has done nothing to boost morale, increase consumer confidence or improve the bank’s performance.”

RBS says: “Inevitably as RBS becomes a simpler, smaller bank focused on the UK and Ireland, our technology function will undergo reorganisation and will reduce over time.

“Our proposed plans are designed to reduce the number of contractors we employ and strengthen our permanent workforce and while we are downsizing in London, we are reinvesting in other UK hubs.”

The bank is owned 73 per cent by the Government, and has not made an annual profit for a decade.

The FCA and Prudential Regulation Authority fined RBS a total of £56m in 2014 following an IT failure two years earlier that left customers unable to pay bill or access cash from their accounts.