RBS have just announced further job cuts, this time totalling 3500 people who will be let go from the 84% tax payer backed bank. This has come as a huge shock to the employees who were boosted by news of £1.1 billion half year profits.
The total redundancies from RBS have now reached 21,000 and this has promoted rumours of the UK’s biggest union “Unite” taking action and speaking to the staff that are set to be made redundant.Unite were quoted to say “Unite is appalled that this 84 per cent tax payer supported institution has since 2009 – under the banner of a strategic review – cut 21,500 staff.”
The move comes as RBS have decided to move many of the jobs abroad to cut costs to places like India and the Far East. This move is becoming increasingly fashionable as an easy cost cutter but has disastrous effects to the U.K economy. The hope is that the job cuts will contribute towards a targeted annual saving of £2.5 billion.
A statement from RBS said In a statement RBS said: “Having to cut jobs is the most difficult part of our work to rebuild RBS and repay taxpayers for their support. We continue to make efficiencies across our business and adjust our plans in line with the divestments we have been required to make by the EU.”
This will come as little comfort to the 3500 people who will have to find alternative employment in a difficult economy.