The banking investment sector has been busy looking for ways to cut costs. The main cutback appears to be jobs that provide support. Just a few weeks ago the Royal Bank of Scotland (RBS) announced a plan to cut 3,500 office jobs which primarily were high-street operations support positions. They have now begun cutting another 500 jobs, which are also support jobs in its investment banking unit.
The total job cuts from RBS in the last two years totals 27,000. Other banks are cutting jobs and the trend is expected to continue as trading businesses across the City have been declining.
Barclays Capital planned to cut as many as 400 jobs over the summer. Credit Suisse announced in August they would be cutting 75 jobs. Most of these cuts will be in London offices.
In a statement RBS said: “We continue to make efficiencies across our business to ensure that we have the right people and resources in place to meet our client needs. We will do all we can to support our staff, offer redeployment opportunities wherever possible and keep compulsory redundancies to an absolute minimum.
“Most of the jobs to go undoubtedly will be in London, which is where most of the division is based. This is part of our ongoing efficiency programme.”
In reference to the months ahead RBS chief executive Stephen Hester added: “In terms of clients, we haven’t yet seen an improvement and we are getting into the quiet times of August. If clients are uncertain and sit on their hands, you make less money in investment banking.”