RBS cuts hundreds of UK tech jobs

RBS cuts hundreds of UK tech jobs

The Royal Bank of Scotland is shedding hundreds of UK technology jobs, offshoring much of the work to India.

Unite the Union says that 334 technology jobs in areas such as CTO, NatWest Markets Technology, Core and Payments, and Digital Engineering Services are being axed.

RBS says that it will create 88 new positions, meaning that a net 246 jobs will go - 92 full time staffers and 154 contractor roles. The bank says it is also adding 38 new Indian positions.

RBS says the cuts are part of back office restructuring as it transforms into a "simpler, smaller UK focused bank". Earlier this year it pledged to take out a further £750 million in operating costs over the year and £2.5 billion over the next four years after reporting widening losses.

Rob MacGregor, Unite national officer, says: "Unite cannot understand how RBS, which continues to be taxpayer backed, can justify hundreds more staff cuts and continue transferring important work out of the country.

"It is wholly inappropriate and unjustified for these technology roles to be sent offshore. Unite has called on RBS to halt the offshoring announcements and impose a moratorium on the offshoring of jobs."

Comments: (6)

Gerard Hergenroeder
Gerard Hergenroeder - Payments Shark - Millersvile 10 May, 2017, 14:40Be the first to give this comment the thumbs up 0 likes

I understand it from a cost perspective. But, how does a bank retain its own unique DNA under those conditions.

A Finextra member
A Finextra member 10 May, 2017, 15:461 like 1 like

So RBS is ten years or more behind the curve. Whoever made this decision should be fired.

A Finextra member
A Finextra member 11 May, 2017, 08:332 likes 2 likes

Let's hope they aren't cutting any vital roles with deep knowledge of legacy infrastructure...

https://en.m.wikipedia.org/wiki/2012_RBS_Group_computer_system_problems

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 11 May, 2017, 16:53Be the first to give this comment the thumbs up 0 likes

For as long as I can remember, every job cut article has a mandatory quote from UNITE. Has it ever made any difference? #JustAsking

Jack Graci
Jack Graci - Independent - Abu Dhabi 11 May, 2017, 19:48Be the first to give this comment the thumbs up 0 likes

I agree with a previous comment that this 'offshoring' by RBS is behind the curve by more than a decade. Moreover what is the net operating cost saving given that positions are being created in the offshore location. What is the % contribution towards the 750m / 2.5bn, as a result of the move.

Whilst still on the Opex reduction side of the equation, how well positioned RBS to take full advantage of the rapid explosion in FinTech and DLT?

On the business growth side, how is RBS performing compared to the other banks? Does RBS have a growth plan?

 

Andy Agnew
Andy Agnew - Smart Traffic City - Edinburgh 15 May, 2017, 08:55Be the first to give this comment the thumbs up 0 likes

Unfortunately a "Smaller, Simpler Bank" has no place for anything new or different nor for dealing with unwieldy legacy, only more of the same. 

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