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RBS to axe 3,000 jobs in coming weeks

(Agencies)
Updated: 2008-11-14 09:52

LONDON -- Royal Bank of Scotland (RBS.L) is to cut 3,000 jobs worldwide in the next few weeks after the banking sector was rocked by the global financial crisis, the BBC reported on Friday.

A receptionist looks out from behind a counter at a Royal Bank of Scotland (RBS) office in Singapore in this October 9, 2008 file photo. RBS is to cut 3,000 jobs worldwide in the next few weeks after the banking sector was rocked by the global financial crisis, the BBC reported on Friday. [Agencies]

The jobs will go at the company's global banking and markets divisions, while its retail operations, including its NatWest bank subsidiary, will be unaffected, the report said without citing sources.

An RBS spokeswoman would not confirm the cuts. In a statement, she said: "We constantly review our operating model to make sure that it is appropriate to the market conditions and take action accordingly."

RBS employs 170,000 staff globally, including 104,000 in Britain, she added.

If the cuts were confirmed, RBS would become the latest in a string of companies to announce large-scale job losses as Britain faces a deepening depression. Telecoms company BT said this week it will cut 10,000 jobs.

Earlier this month, RBS warned it faced more write-downs and rising bad debts this quarter, which could drag it to its first ever full-year loss this year.

Shares in British banks have plunged in recent months during the global economic turmoil that saw the British government step in to recapitalize several large financial institutions.

Investors fear banks will suffer once again as Britain's economy enters a recession.