Layoffs Watch '12: RBS

Author:: Bess Levin
Publish date:: Feb 10, 2012

If it makes the canned feel any better, this is harder on them that it is on you.

Royal Bank of Scotland cut as many as 300 staff in its capital markets and cash equities units after failing to find a buyer for the businesses. Most of the employees affected by the decision are London- based, the bank said in a statement e-mailed to Bloomberg News today. The lender said in January it would cut about 3,500 jobs at the investment-banking division and sell or close the unprofitable cash equities, mergers advisory and equity capital markets divisions. Last month, the bank sold its Hoare Govett corporate broking unit to Jefferies, transferring about 50 jobs. It has been unable to find buyers for the rest of the U.K. equities business. Chief Executive Officer Stephen Hester, 51, decided to dispose of the units after volatile markets and increasing regulation rendered it difficult to generate returns that beat the cost of equity. “Having to cut jobs is the most difficult part of our work to rebuild RBS,” the Edinburgh-based bank said in the statement.

RBS Cuts 300; Can’t Sell Cash Equities Business [RBS]
Related: RBS Feels Bad About Its Firings

The bad news is that 600 of the Queen's corgis are being let go. The good news, while it probably comes as little solace to those who will no longer receive birthday chickens, is that 300 or so new ones will be hired in their place. State-backed lender Royal Bank of Scotland is making more than 600 staff redundant as a result of legislation due to come into force at the end of the year, bringing total staff reductions at the bank since its 2008 bailout to around 36,000. RBS, 82 percent owned by the government, said the jobs would go as a result of new UK rules requiring retail financial products such as savings and investment vehicles to be sold by more highly qualified staff and charged a fee. "As a response to this we will be reducing the number of roles by 618 across the UK and creating 351 new roles," an RBS spokesman said on Tuesday. "Having to cut jobs is the most difficult part of our work to rebuild RBS and repay taxpayers for their support. We continue to make efficiencies across our business to deliver greater value toour customers and shareholders," the spokesman added. RBS Job Loss Hits 36,000 [Reuters]

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]