LONDON – U.K. media are reporting that taxpayer-backed Royal Bank of Scotland is set to cut up to one quarter of its workforce amid massive restructuring.
The Financial Times and Daily Telegraph newspapers are reporting Friday that cuts of between 20,000 and 30,000 jobs will be announced next week when the bank, which is 80 per cent owned by the taxpayer, releases its results.
The reports say the bank will further shrink its investment banking operations and leave overseas businesses in Asia.
Shore Capital Stockbrokers analyst Gary Greenwood says this would make it possible for RBS to become much for focused on U.K. operations and allow investment in new technology.
“Such a strategy is likely to result in a smaller but more efficient, higher return and less risky bank,” he said.