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Layoffs Watch '10: RBS Trying Not To Make A Scene As It Cuts Higher-Ups In Stamford?

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Several weeks back, we mentioned that RBS had plans to cut about ten percent of the Stamford staff, with the timing being unclear though before the end of the year. Today we received a bit more info, namely that the assumption inside is that the bank will be cutting people slowly (just a few people have been let go so far), possibly to avoid press.

A bunch of high yield sales guys were let go last week. There isn't a person here who isn't quaking with fear. London might be doing back-office, operations, IT; but Stamford is doing higher-level. The cost of capital is too high, so the businesses just don't make money. Plus, they hired a bunch of Bear guys (mortgage guys in one egregious instance), gave them exorbitant guarantees, then Scotland said "oops, no money left for you other guys," and the Bear guys waited until the guarantee ended - having done no business of note - and then mostly took off. It seems like they're doing it in "dribs and drabs," maybe to avoid the press.

Earlier: Layoffs Watch '10: RBS


Layoffs Watch '12: RBS

Like Bank of America, RBS has some big goals for the coming year, chief among them being the firing of several thousand investment bankers. (For those skeptical they can do it, according to a PowerPoint presentation presented yesterday, re: the "exits," quite a bit of progress has already been made.) Royal Bank of Scotland, Britain’s biggest government-owned lender, said it will cut 300 more jobs at its investment banking unit and is “on track” with its plan to exit businesses. RBS will eliminate 3,800 jobs at the division by the fourth quarter of next year, compared with an earlier target of 3,500, according to slides based on a presentation delivered by John Hourican, chief of markets and international banking, to analysts Monday. About 3,000 of the cuts will have completed this year, RBS said...The bank’s control of costs is “ongoing,” said Chris Kyle, chief financial officer of markets and international banking, at the presentation. “We will almost certainly hit this year’s number” in terms of the guidance, he said. Royal Bank Of Scotland Cuts 300 More Jobs At Investment Bank [Bloomberg] RBS Markets Investor Roundtable [RBS]