Royal Bank of Scotland is to cut 443 jobs in Britain as the bank moves its team that arranges loans for small businesses to India.
The taxpayer-controlled bank said that the roles would transfer to Mumbai, to be included in the group’s growing team there, as part of a restructuring designed to cut costs, first reported in the Mail on Sunday.
An RBS spokesperson said: “As we become a simpler, smaller, bank, we are making some changes to the way we serve our customers. Unfortunately, these changes will result in the net reduction of 443 roles in the UK. We realise this will be difficult news for staff and we will do everything we can to support those affected, including redeployment into new roles where possible. All roles which require customer contact will remain in the UK.”
The latest wave of job cuts by RBS in the UK comes after at least 400 roles were moved to India last year, including 300 or so investment banking jobs.
In March this year the state-owned bank also said it was axing 158 branches, most of which were NatWest outlets, with the loss of up to 362 jobs.
Last year the bank shed more than 500 jobs as part of a plan to replace the staff giving investment tips with “robo-advisers”.
The bank has been trying to cut costs since a £45bn government bailout nearly 10 years ago at the height of the financial crisis.
Rob MacGregor, national officer for finance at Unite, said: “There has been a drip, drip, drip, cumulative effect so that we estimate that 12,500 people now work for RBS in India. That’s interesting for an organisation that owes its existence to the British taxpayer. We feel RBS has a moral responsibility to try wherever possible to keep work here in the UK. There is no customer business in India; it is just where they can get the jobs they want doing done cheaper.”
Moving jobs which relate to small business loans is likely to prove particularly controversial following a scandal at the bank’s global restructuring group, known as GRG.
MacGregor said: “It does pose the question, when it comes to regulation and risk, is this the right move for RBS?”
Small businesses were pushed to the brink of collapse to enable RBS to make a profit and, after years of pressure from campaigners, the bank set aside £400m to refund fees for customers of the now disbanded division.
RBS has also racked up a £1bn bill to end a legal battle sparked by the government bailout. The battle, involving 9,000 investors, has cost the bank an estimated £900m in settlements to shareholders and £100m in legal fees.