RBS likely to see 30,000 job losses, says report

LONDON: A radical restructuring at the Royal Bank of Scotland may see as many as 30,000 job losses in the next three to five years, says a media report.

The Sunday Times has reported that the company's Chief Executive Stephen Hester is giving finishing touches to a "radical restructuring".

"As many as 30,000 jobs, out of 170,000, could go in the next three to five years as he scales back the bank's network. A total of 10,000 jobs have already been lost," the newspaper today said in a report published online.

Hester is intending to take risk out of the firm's balance sheet, sell non-core operations and shut down businesses that sold problematic products that almost broke the bank.

Noting that this would be concentrated in the company's wholesale-banking division, the report said the plan would be unveiled to the bank's board in two weeks' time at an all-day meeting.

"RBS will maintain a global network of commercial banking operations, but it will pull out of a number of countries around the world thought to include Pakistan, the Czech Republic, Slovakia, Romania and Uzbekistan.

"In Asia, it is likely to focus on creating a hub," it added.

According to the report, the bank is preparing a "boardroom clear-out" to purge the entity of directors linked to the reign of its former Chief Executive Fred Goodwin.

"The government, which owns 70 per cent of the bank, has made it clear it wants to see change at the head of the company," The Sunday Times said.

It also added that Hester, who succeeded Goodwin as the chief executive, has already identified the senior staff, who would have to leave and those who would be promoted.