The Royal Bank of Scotland has said it is planning to cut 3,500 jobs, with most of them to happen this year

RBS sign
Image: BBC News

The cuts are part of a reorganisation and shrinkage of its investment bank.

The losses, which will be split between its UK and international offices, come on top of 2,000 cuts announced earlier.

Its “wholesale banking” business, which provides services to large clients including investment banking services, will be split into separate “markets” and “international banking” divisions.

Some 950 jobs are to go at Irish subsidiary Ulster Bank, split between 350 in Northern Ireland and 600 in the Irish Republic.

The markets division – which comprises RBS’ main trading activities – will focus on the bank’s traditional strengths of debt, currency and money markets, the bank said in its statement.

The wholesale banking division will provide services for the bank’s biggest clients.

These will include corporate advisory services transferred from its investment bank – such as helping major companies borrow money by issuing bonds – as well as cash management and payments services.

The bank has already shed some 30,000 employees over the last two years, 22,000 of them in the UK.

“It is a disgrace that while on a daily basis, stories are emerging about the massive bonuses at the top of the bank, increasing numbers of jobs are being cut from amongst the hard working staff,” said David Fleming of the Unite union.

Deputy Prime Minister Nick Clegg told the BBC that the government “will be working with [the government’s holding company for the RBS shares it owns] and others to make sure that RBS clearly understand that this is not the time to start paying people lavish bonuses”.

Markets took the statement well, although many of the details had been flagged up in advance.

RBS’s share price rose 6.8% in morning trading, outperforming other banks and other large companies on the FTSE 100 index.

Cutting back

The bank said that it planned to close or sell off other business lines, such as those dealing with shares and stock markets, as well as its business advising companies on mergers and acquisitions.

It is also looking to dispose of its corporate brokerage, Hoare Govett.

These business lines were ones that had been added or expanded only in recent years under the leadership of former chief executive Sir Fred Goodwin.

Read More: http://www.bbc.co.uk/news/business-16517432

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The Royal Bank of Scotland has said it is planning to cut 3,500 jobs, with most of them to happen this year