RBS begins consultation with

RNS Number : 2824Q

Royal Bank of Scotland Group PLC

07 April 2009

 



7 April 2009

RBS begins consultation with Unite about job losses

RBS has begun consulting Unite and other employee representatives about a business plan for its back office operations that will regrettably involve job losses. 

The plan could affect up to 9,000 Group Manufacturing roles globally, including 4,500 in the UK, over the next two years. 

However, the actual number of jobs lost is expected to be significantly lower than this. 

A redeployment programme has already identified 650 new job opportunities in the UK and the impact will also be reduced through natural turnover and less use of agency staff.

RBS will make voluntary redundancy arrangements available which may suit some of the staff affected by this announcement. RBS agrees with Unite that compulsory redundancies should be a last resort. 

The business plan, which involves a number of other cost-saving initiatives including moving to a common technology platform, will help RBS achieve its target of reducing annual costs by £2.5bn within the next three years.

Stephen Hester, Chief Executive of RBS, said: 'We have set a new strategy for RBS to restore the Bank to standalone strength as soon as practicable. From this we want the Government to be able to realise value from its investment in RBS. To do so we need to cut our costs, as in all businesses, given the current recession. Unfortunately that means taking difficult decisions about jobs as well as taking many other cost reduction actions. We want to be as open and transparent as possible and are announcing these plans at the earliest possible opportunity so that our employees can prepare for the future.'

For further information please contact:

Linda Harper              Don Hunter

RBS Press Office      Finsbury

0131 525 0382           020 7251 3801

Notes to Editors

Group Manufacturing comprises the Group's worldwide manufacturing operations. It provides support for the Group's customer facing businesses, including back office operations, purchasing, IT services, and property management.  

RBS employs over 170,000 people worldwide, including 106,000 in the UK (at 31st December 2008).

Group Manufacturing employs 45,000 people worldwide, including 27,000 in the UK (at 31st December 2008).

 

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