Massive RBS losses lead to job cut fears

26/02/2009

Massive job cuts are expected at RBS, after the bank announced the worst financial results in UK corporate history.

In today's statement, the firm said that it had lost around £24 billion, due in part to the large amount of "toxic assets" held on its balance sheet.

RBS has been hammered by the credit crunch and had to be bailed out with £20 billion of taxpayers' money last year.

"We have launched a restructuring plan to make efficiency savings," the bank said.

"This will involve a wide range of re-engineering and other measures and, regrettably, reductions in employment."

Reports over the weekend suggested that the job cuts at the firm could go into the tens of thousands.

"We are extremely frustrated by the lack of clarity over the company's restructuring proposals with no firm detail on jobs," joint general secretary of trade union Unite, Derek Simpson, said.

"The uncertainty hanging over the heads of these workers is unacceptable."

In its latest statement, RBS said that one of the ways it will deal with the balance sheet crisis is to move the "toxic assets" into a new, £300 billion "bad bank".

Tags; Job loss, Credit Card Lifestyle, Recent Graduate Debt,

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