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RBS hits back at reports it is set to axe 16,000 jobs



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Published Date: 28 October 2008
ROYAL Bank of Scotland today denied reports that it is set to axe 16,000 jobs.
The Edinburgh-based bank hit back at claims by unnamed senior bank sources in a newspaper report that the cuts would happen in batches across all departments and offices.

But it was unable to say that there would be no job cuts in the wake of the crisis in the financial services industry.

A spokeswoman for the bank said: "These figures are completely unfounded and, as we said on October 13, we are not announcing any job cuts as a result of recent announcements.

"However, as you would imagine, we continue to review our business in light of market conditions and if these change drastically, like all other organisations we would need to respond to that."

The reports came today as analysts awaited further details of writedowns by RBS, with further details expected on Friday.

It is expected that the bank will add a further £3 billion of writedowns to the £5.9bn already announced in the first half of the year.

It is largely as a result of the decline in the value of special credit derivative assets designed and sold by ABN Amro, which RBS bought last year.

There are also claims that RBS chief executive Sir Fred Goodwin will not be long out of work when he leaves the company in three weeks, to be replaced by British Land boss Stephen Hester.

There is growing speculation that he has already been approached with an array of job offers. It is thought that he could take up a private equity role, or move to a job in the United States, where he has many contacts.

Meanwhile, First Minister Alex Salmond was today set to meet Lloyds TSB bosses in London to lobby for Scottish jobs over the bank's proposed merger with HBoS.

An estimated 17,000 HBoS jobs are based in Scotland, including around 6500 in Edinburgh, and it is feared that thousands will be lost if the merger goes through.

Mr Salmond will use the meeting to press home the "strong case" for maintaining jobs in Scotland in the event of the merger going ahead, his spokesman said.

"The presentation is on the basis that the proposed deal obviously has implications for jobs and headquarters functions in Scotland," the spokesman added.

A spokesman for Lloyds TSB said it will be a private meeting and would not say if chairman Victor Blank would be there.

Mr Salmond told this month's SNP conference that the £37bn given to three of Britain's biggest banks, including RBS, had thrown up the question of whether this money was available to Lloyds TSB and HBoS separately.

The Scottish Government has written to the Treasury on the issue but has yet to receive a reply.


The full article contains 480 words and appears in Edinburgh Evening News newspaper.
Page 1 of 1

  • Last Updated: 28 October 2008 9:44 AM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
  • Related Topics: Royal Bank of Scotland
 
1

SkeptikScot,

28/10/2008 18:42:30
There's a report in the Record that suggests that Scotland will be the last to receive cuts; though that might mean RBS is gonna be seriously cut down to size overseas. Shame, though better than lose Scots jobs.

 

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