RBS Layoffs
Royal Bank of Scotland, RBS, has announced that it will cut upto 2,300 jobs as part of its restructuring plan. RBS employes about 106,000 people in UK and the proposed job cut amounts to cutting about 2% of its total workforce. This job cut is in addition to the 3000 job cuts announced by RBS in October 2008. However the layoffs will NOT affect customer-facing staff, according to the announcement.

RBS LayoffsFormer RBS chief executive Sir Fred Goodwin also told the MPs on 10th Feb 09 that the bonus culture in RBS also needs to be reviewed.

Reasons for RBS Layoffs
RBS expects to make a loss of between £7bn and £8bn in the year of 2008. It is also set to write down the value of assets, largely related to its takeover of ABN Amro in 2007, by up to £20bn. The announced job cuts are part of cost cutting plan in order to keep the redundancies at a bare minimum.

source: BBC, Reuters, WSJ,

Feb 10, 2009

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