The Royal Bank of Scotland (RBS) is planning to cut 900 technology jobs at its London offices by 2020 in a bid to reduce costs, according to the Unite Union. It has been alleged that RBS is intending to cut 40% of its permanent IT staff equalling 650 jobs as well as 230 contractors. The bank has recently said that no individual job was at risk and no figures have been finalised.
A spokesperson for RBS said “We have not consulted on any headcount reduction, instead sharing a direction of travel with Unite which is subject to change.” National Officer at Unite, Rob MacGregor said “Royal Bank of Scotland is continuing with its savage jobs culling program with today’s (15th August) announcement of a 40% in IT staff, totalling nearly 900 staff.”
The bank, which is 73% owned by the Government has been undergoing a restructuring program since it was bailed out during the financial crisis. The global workforce for RBS has shrunk from 226,000 in 2007 to around 77,000 and it has not made a full-year profit in a decade.
RBS said in a statement “Inevitably as RBS becomes a simpler, smaller brand focused on the UK and Ireland, our technology function will undergo reorganisation and will reduce over time. 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.”