LONDON (Thomson Financial) - Royal Bank of Scotland Group Plc. will this
week kick-start the integration of ABN Amros investment bank into its global
markets division in a process that is likely to trigger the loss of about 7,000
jobs or about 25 percent of the combined 28,000 workforce, said the Financial
Times.
The Scottish bank, which last week announced a 12 billion rights issue, has
so far made only relatively modest cuts to ABNs investment banking unit, which
it acquired in October as part of the 71 billion Euro break-up bid for the
Netherlands lender.
However, RBS is now under pressure to act more aggressively, as its
integration process gathers pace and the market downturn hits the financial
industry more widely.
The bank is expected to start writing to staff just below senior management
level as early as Wednesday this week, asking them to submit information about
their career histories as part of a formal consultation for planned redundancies
in the investment bank, the report said.
This consultation, which is expected to take four to six weeks, comes amid
internal fears that ABN staff will face heavier cuts than their RBS
counterparts.
The process will include a works council comprising representatives from
each business unit. Some, but not all, employees whose jobs are at risk will be
summoned for interview.
The planned headcount reductions come amid signs that investment banks are
becoming more aggressive in cutting jobs in Europe in response to the credit
crunch.
By Anita Likus; anita.likus@thomsonreuters.com
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