19 December 2011
RBS to implement 18,900 redundancies?
Thousands of professionals at the Royal Bank of Scotland (RBS) have been warned to expect the possibility of facing redundancy in the near future, it has emerged.
According to the Sunday Telegraph, senior officials at the financier are considering the implementation of wholesale reforms to its investment banking business in the aftermath of the recession.
With this in mind, it is thought the company's Global Banking and Markets (GBM) arm could be halved in size under the restructure - a move that would potentially place as many as 18,900 jobs at risk.
Under the changes, the GBM's balance sheet could be cut to £200 billion, a figure around 20 per cent of the £1 billion level it was at before RBS - which has more than 40 million customers worldwide - was bailed out by the government three years ago.
A senior source said the Conservative-Liberal Democrat alliance is "not prepared to keep things going in their present form" due to ongoing market difficulties.
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Posted by Chris Stevenson