By shipping the jobs to India, RBS will get cheaper work, albeit at the cost of jobs and livelihoods in the UK.
British lender Royal Bank of Scotland (RBS) is about to cut 443 jobs, which particularly deal with business loans, in the UK. The bank will outsource and shift many of these job roles to India.
The bank is in a cost-cutting drive and the move is part of that ongoing process. It is said that the move will ultimately help the bank to handle small business loans effectively.
The reason of outsourcing these jobs to India is very clear — India’s cheap labour. In May this year, the bank had announced its plan of cutting UK jobs and shipping them to India.
A spokesperson of the bank said, “By shipping these jobs to India, RBS will be getting that work done more cheaply at the cost of jobs and livelihoods here in the UK.”
Talking about the effects of bringing this change in the way RBS functions, the spokesperson said, “As we become a simpler, smaller bank, we are making some changes to the way we serve our customers. Unfortunately, these changes will result in the net reduction of 443 roles in the UK.”
The British workers’ union Unite said that British workers and taxpayers will lose from this move.
To support the affected employees, the bank will try to accommodate them into new roles wherever possible.