RBS to cut 3,700 jobs in UK branch network

posted: 24 DAYS 21 HOURS AGO

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LONDON -The Royal Bank of Scotland PLC, which is 70 percent owned by the British government, said Monday it plans to cut 3,700 jobs in its British branch network over the next two years.

The job cuts, which RBS described as "deeply regrettable but ... necessary," are part of its plans to restructure and modernize its retail banking division.

The bank said it hoped to achieve most of the cuts through voluntary redundancy and also would discuss job share and flexible working hours with staff involved.

"We have 30 percent more staff carrying out administrative duties per customer than our competitors, and they spend less than half their time dealing with customers," said Brian Hartzer, CEO of UK Retail, Wealth Management and Ulster Bank Group.

"We have under-invested in our branches and customer infrastructure at a time when people are changing how they bank and changing what they expect their bank to do for them," he added. "We have to change that if we are to rebuild our success by serving our customers better."

RBS — which became 70 percent owned by the government after taking part in a massive state bailout of the banking sector — is expected to discuss further changes on Tuesday after disclosing that EU regulators have demanded it sell significant parts of its business.

RBS shares closed 7.8 percent lower at 38.65 pence.

2009-11-02 16:20:37