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RBS Outlines Plans To Cut 2,000 Jobs

Posted on Aug 25 2010
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The part-nationalised bank has informed staff of the plans, which will see 14 of its insurance centres close completely, with job losses at over a dozen more. RBS claims it is "too early" to say how many workers will be forced to accept redundancy. The most high profile site to close is the Direct Line call centre at Atlantic Quay in Glasgow, which employs 640 people.
Around 400 of them will be made redundant with the rest shifting to other roles within the company. RBS is also closing another site in Glasgow, two in Birmingham, two in Croydon and two in Bristol. Sites in Farnham, Ipswich, Manchester, Peterborough, Romford and Cardiff, will also be shut down over a three-year timescale.
RBS said in May that 2,000 jobs would go at its insurance arm, which includes the Direct Line, Green Flag, Churchill and Privilege businesses and employs 16,000 people. It was forced by the European Commission to sell its insurance division as part of the deal to allow it to accept the Government bailout nearly two years ago. The sale needs to happen by 2013, and the site closures form part of cost reduction plans ahead of that move.
Rob MacGregor, national officer at trade union Unite, said: "RBS staff are continuing to pay the price for the bank's failure with their jobs.
"They are trying to do the best job they can during a hugely stressful period of uncertainty. "Unite is calling on RBS to come clean with staff and clarify the impact of the restructuring and end the uncertainty. Unite will hold RBS to account over any compulsory job losses that result."
RBS said that the European ruling had accelerated plans for cost savings and that having to cut jobs was the most difficult part of the process. "At this stage it is too early to say how many role reductions this will involve, but we will do all we can to support our staff, offer redeployment opportunities where possible and to keep compulsory redundancy to an absolute minimum," the bank said.
RBS is yet to put the insurance operation up for sale but is looking at a potential flotation or trade sale, expected next year or in 2012. It has already said it aims to reduce the number of roles in the group by a massive 23,100 globally, over 17,000 of which will be lost in the UK.
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