RBS admits 10,000 jobs at risk in restructure
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Royal Bank of Scotland is looking to sell off its investment banking arm as part of a restructuring plan that could see up to 10,000 jobs cut from the firm.
The bank has recently appointed Lazard to search for potential buyers for the business. According to the Financial Times, the job cuts – which are combined with up £2 billion of restructuring costs – are the worst case scenario for Stephen Hester, chief executive of RBS.
The cuts are expected to focus on RBS’s equities business, which created only £623m of the £5 billion revenue produced by the investment bank in the first nine months of 2011.
The plans come on the back of Chancellor George Osborne’s call for the bank, which is 83% owned by the government, to scale back its risky activities.
The cuts would half the 19,000 staff employed by the investment bank. The deal would see RBS return to its original focus of being a UK retail and corporate financing bank.
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