The RBS announced on Thursday the details of the restructure of its insurance division. Approximately 2000 jobs, of the total 16,000, will be cut, according to the company. On the physical location side, 14 insurance centers of 36 across the UK will close over the next 3 years. The UK government owns a little over 80 per cent of the embattled bank.
Since the first bank bailout in late October of 2008, RBS lost or planned on losing about 23,000 jobs, 170,000 of which are located in the UK. This leaves the bank with approximately 100,000 employees.
RBS has been ordered by the European Union to sell off the insurance division by the end of the year 2013 as part of a stipulation within the state aid which it has been given.
The bank commented on the unfortunate news, saying: “The EU decision requiring the sale of the RBS insurance business has accelerated our plans for cost savings and having to cut jobs is the most difficult part of this process. At this stage, it is too early to say how many rate reductions this will involve, but we will do all we can to support our staff, offer deployment opportunities where possible and to keep compulsory redundancy to an absolute minimum.”
Rob MacGregor, national officer and trade union Unite also commented on the restructure saying: “RBS staff are continuing to pay the price for the bank’s foreclosure with their jobs. They are trying to do the best job they can during a hugely stressful period of uncertainty.”