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.

  10 6 comments

RBS cuts hundreds of UK tech jobs

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

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."

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Comments: (6)

Gerard Hergenroeder

Gerard Hergenroeder Retired IBMer and Banking Executive at Payments Shark

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

A Finextra member 

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

A Finextra member 

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 Founder and CEO at GTM360 Marketing Solutions

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 at Independent

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 Solutions Architect at Smart Traffic City

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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