RBS begins consultation with Unite about job losses

RBS has begun consulting Unite and other employee representatives about a business plan for its back office operations that will regrettably involve job losses.

The plan could affect up to 9,000 Group Manufacturing roles globally, including 4,500 in the UK, over the next two years.

However, the actual number of jobs lost is expected to be significantly lower than this.

A redeployment programme has already identified 650 new job opportunities in the UK and the impact will also be reduced through natural turnover and less use of agency staff.

RBS will make voluntary redundancy arrangements available which may suit some of the staff affected by this announcement. RBS agrees with Unite that compulsory redundancies should be a last resort.

The business plan, which involves a number of other cost-saving initiatives including moving to a common technology platform, will help RBS achieve its target of reducing annual costs by £2.5bn within the next three years.

Stephen Hester, Chief Executive of RBS, said: “We have set a new strategy for RBS to restore the Bank to standalone strength as soon as practicable. From this we want the Government to be able to realise value from its investment in RBS. To do so we need to cut our costs, as in all businesses, given the current recession. Unfortunately that means taking difficult decisions about jobs as well as taking many other cost reduction actions. We want to be as open and transparent as possible and are announcing these plans at the earliest possible opportunity so that our employees can prepare for the future.”