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RBS needs to do a lot more than culling call centre jobs

Needless to say, RBS is cutting lots of jobs. Over the next two years it will be eliminating 9,000 posts, of which half will go from the UK. The cuts are to be entirely focused in the ‘manufacturing division,’ which according to the bank’s annual report is only call centres and IT support

supports the customer facing businesses and provides operational technology, customer support in telephony, account management, lending and money transmission, global purchasing, property and other services.

RBS is the cutting jobs because it needs to save money – 2.5bn to be precise. However, if saving money is the focus, call centre jobs doesn’t seem the best ones to be trimming.

In 2008, the average salary paid to RBS’s 44,900 manufacturing employees was 26.6k. By comparison, the average amount paid to RBS’s 20,900 global banking and markets staff was 133k.

If global banking and markets were forced to bear the full force of the banks’ 2.5bn cost cutting programme, 18,000 jobs would have to go. This isn’t going to happen – RBS remains committed loans, bonds, FX, rates, commodities and equities.

However, (and as we’ve said before) very big cuts in GBM seem inevitable. Today’s cuts are unlikely to be the last: MarketWatch reports that redundancies will be announced on a division by division basis as plans are finalized.

In reducing its manufacturing headcount by 9,000, RBS will save around 240m. That leaves 2.3bn of cost savings still to go.

Comments (11)

Comments
  1. It is already abundantly clear that RBS is fast becoming a small, non-entity kind of place employing non-entities.

  2. Good point John – who cares anymore? Make them all redudant! Esp those who sit there and do nothing ie: everyone in support functions!

  3. RBS must to adjust to the new realities but jeez, have some empathy. They’re not monsters.

  4. Very sorry about the people. So what was this government bail-out actually supposed to do?

  5. What a nice human comment you make Jizra – NOT! Some employees have been working flat our for their customers and most customers know that is happening and appreciate it. The errors made by Executives cannot be blamed on those scrapong by on the low end of RBS salaries and thoise left are working extremely hard to get RBS Group back in good shape. I hope you, Jizra, are never faced with redundancy (or perhaps I do for your selfish uncaring comment!) as you would know how awful it feels to be losing your job, income and in soem cases home.

  6. John – you plum. What kind of a rediculous, waste of space comment is that? What value was there in your posting? Do you just like the sound of your own comments? Get back in the library and finish your essays like a good student and leave the comments on the industry to the adults.

  7. I know someone who joined RBS 4 years ago in the equity derivatives business. At the time he had 1 year experience. In about 3 years he was an MD and was driving a ferrari. Now what does that tell you? Bye bye RBS and you were worth it. Unfortunatelly the taxpayer had nothign to do with it and is paying the bill.

  8. Mike and Mike P, I take it you are so incensed that you have forgotten how to spell. Either that or you are incapable of writing in English and your anger is probably due to feelings of personal inadequacy.

  9. Norbert – Perhaps we are working so hard we haven’t the time to spell check and waste our companies time as you clearly have. Glad you managed to make such a profound statement about spelling when people all around are losing their jobs. Sound like you are a person whose priorities are well placed….in the bin would seem appropriate

  10. RBS must to adjust to the new realities but jeez, have some empathy. They’re not monsters.

  11. it is very clear tat RBS took a wrong step when they bought ABN for such a huge amount, the only deal in th history where one bank has made such a huge amount to anthr..well ABN irectors r happy bt the employee who wree wrkinh they r nt happy anymore coze they r under the new policy of RBS..trus its nt good i wrkd with the company fr more then a year….nd gt nthng….m nt hear to complain coze i knw my capablities nd just waiting fr the ryte company to employee me….who will actually appreciate my wrk….bt it is sad the way company is gng so many pple lost there job nd dnt how many will…..tc pple..peace

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