RBS to trim 15,000 staff in a bid to cut costs and boost efficiencies

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The distressed bank is expected to report losses of £2.3bn for 2016, in its financial results to be published soon.

 

Edinburgh-based Royal Bank of Scotland is once again sailing the rough seas as it looks to cut more costs and improve efficiencies. After reporting losses for eight years and looking at the ninth consecutive year in red, it is trying hard to control costs. If media reports are to be believed, the bank may lay off 15000 members from its workforce this year.

The troubled bank is expected to report losses of £2.3bn for 2016, when it publishes its financial results later this month. Although there has been no clarity on the exact number of layoffs this year, a source confirmed that operational managers across levels and locations have been asked to trim their teams by 10 per cent.

The bank is expected to continue its strategy of slimming down, as it prepares to unveil fresh plans to meet profit targets alongside annual results on 24 February. RBS has lost well over £50bn since the financial crisis struck and it was bailed out in 2008. Bosses are now under pressure to take more costs out of the business.

It has already pulled back from many international operations and cut down its investment bank, slashing the number of employees from a peak 226,400 in 2007 to just 82,500 late last year. In 2016, RBS slashed about 10,000 jobs, and hence, another 15,000 this year appears to be a big number. However, it looks like a trimming of workforce is surely underway.

The bank may cut administrative roles and eliminate staff for tasks, such as opening bank accounts. Along with cost cutting, it will also consider investing in upgrading its IT systems to improve efficiency and lower expenses.

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