JOB CUTS AND CLOSURES
Royal Bank of Scotland has an ambitious cost-cutting plan, says source
Up to 15,000 jobs could be on the line at the Edinburgh-based lender as it battles to bolster profitability
London — Royal Bank of Scotland (RBS) is preparing to reduce more than £1bn of annual operating costs by cutting jobs and closing branches as it seeks to bolster profitability, says a person with knowledge of the plans. While the Edinburgh-based lender would probably not reveal a headline figure for job cuts, senior executives had determined RBS had more staff than it required, said the person, who asked not to be identified because the details are private. RBS has said it would unveil fresh plans to meet profit targets with its annual results on February 24. The Sunday Times, citing an analyst it did not identify, said RBS needed to cut 15,000 jobs. An RBS spokeswoman, who declined to comment on the plans, said of the Times story: "We do not recognise this report." CEO Ross McEwan’s plan to lower the cost-to-income ratio to below 50% by 2020 was blown off course after the Bank of England cut interest rates in 2016. Challenging He probably needed to remove about £1bn of annual expen...
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