RBS said planning to make nearly 900 London job cuts

Broken Computer

Royal Bank of Scotland is planning further cuts to its IT operation, leading to nearly 900 new job losses, according to a union.

The bank told staff today that it will be cutting a 40 per cent of permanent staff in its London IT function and 65 per cent of contractors.

According to union Unite, this will mean a reduction of 880 staff: with 650 permanent jobs and 230 contractors being cut.

RBS employed 2,200 IT staff in the capital last year, and this figure will reduce to 950 in 2020, Unite said.

“Royal Bank of Scotland is continuing with its savage jobs culling programme with today’s announcement of a 40 per cent cut in IT staff, totalling nearly 900 staff,” said Unite national officer Rob MacGregor. “The decade of slashing jobs has done nothing to boost morale, increase consumer confidence or improve the bank’s performance.

“By 2020 just a fraction of the RBS IT function will remain, leaving this organisation operating a skeleton service with the customers and remaining staff paying the price.

“RBS’s fixation with cutting employee numbers, restructuring and offshoring work that could reasonably be done by displaced staff within the RBS IT community is unacceptable. This British-taxpayer funded bank should be concentrating on investing in jobs here in the UK, rather than wholesale cuts.”

An RBS spokesperson said:

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

As we develop long term plans for our technology business, we have in the interests of transparency, started to share our emerging proposals on a future operating model with Unite. We have not consulted on any headcount reduction, instead sharing a direction of travel with Unite which is subject to change.

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.

Read more: RBS unveils £939m profit - and plans for an Amsterdam HQ after Brexit

Full story: RBS is planning to make nearly 900 London job cuts, union says: City A.M.

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