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Tuesday 04th of August 2009
November 14, 2008

RBS to axe 3,000 jobs


by Kay Murchie
”RBS

RBS (RBS) adds to the thousands of job losses in the UK this week by announcing that it is to axe 3,000 staff from its global banking and markets division.

The news of the job losses follows a week of cuts after JCB, one of the largest construction equipment manufacturers in the world, is set to axe almost 400 jobs.

Leyland, the truck-maker, announced 250 job losses are to go at its factory in Lancashire.

Virgin Media announced it is to cut 2,200 jobs from its 14,600 workforce.

Housebuilder Taylor Wimpey, said it has shed 1,000 employees as a result of the slowdown in the housing market and the fall in demand for new homes.

In addition, the world’s second largest drugs maker, GlaxoSmithKline, said it is to shut its manufacturing site in Dartford with the loss of over 500 jobs.

Meanwhile, the British handheld computer maker, Psion, has announced 200 job losses.
Vodafone, the world’s largest mobile phone company, has announced a cost-cutting exercise, which has led to job fears.

Just yesterday, telecoms giant BT announced it is to slash 10,000 jobs by the end of March 2009, which represents 6% of its global workforce.

RBS, which has a global workforce of around 170,000, said it is constantly reviewing its operating model to make sure it is appropriate to the market condition, and take action accordingly.

While the bank declined to go into detail about the job cuts, it is understood that the bank’s High Street operations, and those of subsidiary NatWest, will not be affected.

According to Nick Cosgrove, a reporter for the BBC, RBS has had heavy exposure to the US sub-prime mortgage market and paid too much for Dutch bank, ABN Amro.

Earlier this month, RBS announced further write-downs on credit assets totalling £206 million, on top of the £5.9 billion it reported in the first six months of the year.

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