• 03 Aug 2011 at 6:17 PM

Layoffs Watch ’11: RBS

RBS has a new internal motto called “Change the Bank.” What do the changes entail? Ixnaying on ealsday ikelay ABN AMRO-ay and firing a couple thousand employees.

Royal Bank of Scotland plans to shed as many as 2,000 employees from its investment banking arm as it completes the integration of ABN Amro, the disastrous Dutch acquisition that pushed RBS to the brink of collapse. John Hourican, the head of RBS’s global banking and markets division, told the Financial Times that a smaller, more focused business would deliver more stable profits, while avoiding the “strategic tourism” that saw past management teams pursue ill-fated expansion. “The thing about the ABN Amro deal was it was a massive, bold undertaking at exactly the wrong moment,” Mr Hourican said. “You could not have chosen the more perfect ill-timing for any transaction.”

At RBS, the 2,000 jobs earmarked for elimination within global banking and markets are part of the “Change the Bank” initiative, which was set up to reduce inefficiencies across the group.

[FT] via BI

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Comments (10)

  1. Posted by Anal_ist | August 3, 2011 at 8:01 PM

    Is there anyway to have the comment replies expanded by default? Clicking the expansion arrow on 5 threads just to get 1 good reply makes it way less entertaining.

  2. Posted by WhattheFinn | August 3, 2011 at 9:26 PM

    Disqus got laid off. New comment apparatus guy trying to fill in. Doing bad job.

  3. Posted by UBS4LYFE | August 3, 2011 at 10:06 PM

    can someone explain to me what "Ixnaying on ealsday ikelay " means

    - Former UBS Summer Intern

  4. Posted by Guest | August 4, 2011 at 9:14 AM

    I dont think you would understand even if we spelled it out for you.

    - GS Back Office Intern

  5. Posted by Bank of G'wich | August 4, 2011 at 9:27 AM

    How do more layoffs and the admission that the piece of crap ABN-Amro was only bought because Fred had to have a "win" over Barclays = Change The Bank?

    Isn't this really: Things Stay The Same At The Bank?

  6. Posted by Bank of G'wich | August 4, 2011 at 9:30 AM

    I'd also like to add that it wasn't the "timing" that was horrific. It was that horrible stench. My S.O. worked on that RBS/ABN deal and was tasked with evaluating the ABN f.i. portfolio. It was bad, sour loans and more going bad, yet still considered performing. The Power That Be said they'd figure it out AFTER IT CLOSED. I don't know what sort of "timing" would have made a POS into gold, but please tell me so I can figure out the right time to buy UBS' i-bank.

  7. Posted by guest | August 4, 2011 at 2:15 PM

    guessing won't be any of the bear boys…..they are just so invaluable….just ask them

  8. Posted by Fred Goodwin | August 4, 2011 at 2:18 PM

    So the plan is to continue paying six figure "retirement" benefits to Fred Goodwin — the genius that made this ill timed acquisition, and paid twice as much as originally planned even after Lasalle Bank was removed. At the same time 2000 hapless dolts who had nothing to do with Goodwin's stupid decision will get the ax — joining thousands of others who's careers and retirement savings were already destroyed by Goodwin's arrogance and stupidity.

    And the executives at RBS will all stand around in their executive dining room and wonder why people say RBS hasn't changed a bit.

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